1

GETTING A GRIP
on Climate Change
in the Philippines
EXECUTIVE REPORT
Contributing to the
foundation and ensuring
the future for a low-carbon,
climate resilient society
through the Philippine
Climate Public Expenditure
and Institutional Review
2013 The International Bank for Reconstruction
and Development/THE WORLD BANK
1818 H Street, NW
Washington, DC 20433, U.S.A.
Telephone: 202-473-1000
Internet: www.worldbank.org
E-mail: feedback@worldbank.org
All rights reserved.
June 2013
This volume is a product of the staf of the International Bank for Reconstruction and Development /
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3
TABLE OF CONTENTS
ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
SYNOPSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
II. SIGNIFICANCE OF THE REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Global climate change is taking its toll on the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Greenhouse gas emissions in the Philippines are increasing rapidly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Climate action contributes to inclusive growth and poverty reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
The Philippines climate reform agenda aims to consolidate climate policy across all levels of Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Centralized institutional coordination supports the reform agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
III. KEY ANALYTICAL FINDINGS: OVERCOMING BARRIERS THAT IMPEDE SUSTAINED CHANGE . . . . . . . . . . . . . . . 31
The frst phase of the climate reform agenda must be fnalized in order to reach sustained low-carbon
and climate-resilient development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Climate policy reform eforts are only partially aligned with development plan outcomes, thereby limiting efectiveness . . . . . . . . . . . . . . . . . . . 32
Execution and coordination of climate actions are hindered by a lack of clarity in roles and responsibilities across institutions . . . . . . . . . . . . . . 34
Leveraging a low-carbon green-growth strategy and market-based instruments can strengthen engagement with the private sector . . . . . . 37
Diferences in the classifcation of climate PAPs hinders climate budget planning and prioritization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Climate appropriations have been increasing relative to overall Government budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Climate appropriations have been funded largely from domestic sources, while development
partner support has concentrated on food control and management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Climate appropriations focus on a few large PAPs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Financing gaps for knowledge and capacity development may slow implementation progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
LGUs are action-oriented, but sources of funding are fragmented and their available amounts are limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Climate appropriations have been focused on adaptation, but the share of appropriations for mitigation has been rising faster . . . . . . . . . . . . . 47
Convergence of the Climate Change Adaptation and Disaster Risk Reduction and Management agendas
is not refected in budgets and plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Available planning and design tools are often not mainstreamed or are overly complex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Public fnance reforms provide opportunities to improve planning, prioritization, execution, and monitoring of climate PAPs . . . . . . . . . . . . . . . .51
Innovative budgeting tools introduced through the PFM Reforms will enhance planning and prioritization,
as well as signifcantly advance convergence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Increased budget transparency facilitates mobilization of domestic and development partner resources for climate action . . . . . . . . . . . . . . . . . 55
Existing monitoring and evaluation systems have cumbersome reporting requirements, and the lack of climate indicators
limits their usefulness to support the Governments climate reform agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Weak institutional capacity, including limited access to knowledge, has hindered efcient execution of the climate
reforms and action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
IV. RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
Pillar 1: Strengthening the Planning, Execution, and Financing Framework for Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
Pillar 2: Enhancing Leadership and Accountability through Monitoring, Evaluation, and Review of Climate Change Policies
and Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Pillar 3: Building Capacity and Managing Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
ANNEX A: STRATEGIC ACTION PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
ANNEX B: FRAMEWORK FOR ANALYSIS AND LIMITATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
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TABLE OF CONTENTS:
Tables, Figures and Boxes
Figure 1. Scientifc Agreement on Temperature Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Figure 2. Climate Change Vulnerability Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Figure 3. Greenhouse Gas Emissions in the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure 4. From Fragmented to Comprehensive Laws and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 5. NCCAP Priority Areas and Outcomes 2011-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure 6. Linkages between Climate Adaptation Actions and DRRM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure 7. Institutional Structure on Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Figure 8. Institutional Responsibilities by Functional Stream Designated by the Climate Change Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Table 1. Comparison of Selected Major PAPs by Diferent Tagging Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Figure 9. Climate Appropriations by Classifcation, 2008-2013 (in Php billions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Figure 10. Evolution of Climate Appropriations Based on the NCCAP Classifcation, 20082013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Figure 11. Growth Rates of Climate Appropriations and Total Budget Appropriations of Departments/Agencies, 2008-2013 (in %) . . . . . . . . . . . . 40
Figure 12. Trends of Climate Appropriations by Department/Agency, 2008-2013 (on appropriation basis, in Php billions). . . . . . . . . . . . . . . . . . . . . . 40
Figure 13. Composition of Expenditures and Appropriations by NCCAP Strategic Priority Area, 2008-2013
(on obligation and appropriation basis, in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Figure 14. Climate Expenditures and Appropriations by the NCCAP Thematic Priority, 2008-2013 (in Php billion) . . . . . . . . . . . . . . . . . . . . . . . . . .42-43
Figure 15. Appropriations for Climate Change Initiatives of the Province of Albay, 2008-2012 (in Php billions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Box 1. Contrasting Circumstances, Similar Successes: Case Studies on Makati and Albay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Figure 16. Spending on Climate Change Programs and Projects of Makati City, 2008-2012 (in Php billion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Figure 17. Per Capita LGU Income of Provincial Governments, Ranked According to Various Hydro-meteorological Risks, 2009 (in pesos) . . . . 46
Figure 18. Key Characteristics of Local Sources of Climate Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Figure 19. Climate Appropriations by PAPs Addressing Adaptation, Mitigation, or Both 2008-2013 (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Figure 20. Climate Appropriations for PAPs Contributing to Adaptation only by Department, 2008-2013, (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Figure 21. Climate Appropriations for PAPs Contributing to Mitigation only by Department, 20082013 (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Figure 22. The Philippine Budget Cycle: Examples of Entry Points for Integrating the Climate Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Box 2. Secondary Tagging: Lessons from Ugandas Virtual Poverty Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
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ABBREVIATIONS
ADB Asian Development Bank
AIP Annual Investment Program
AO Appropriations Ordinance
AUSAID Australian Agency for International Development
BARs Budget Accountability Reports
BMU Bundesministerium fr Umwelt, Naturschutz Und Reaktorsicherheit
BSWM Bureau of Soils and Water Management
BUB Bottom-Up Budgeting
CC Climate Change
CCA Climate Change Adaptation
CCC Climate Change Commission
CCCC Cabinet Cluster on Climate Change Adaptation and Mitigation
CDP Comprehensive Development Plan
CFG Climate Finance Group
CLUP Comprehensive Land Use Plan
CPEIR Climate Public Expenditure and Institutional Review
CSOs Civil Society Organizations
DA Department of Agriculture
DBM Department of Budget and Management
DENR Department of Environment and Natural Resources
DILG Department of the Interior and Local Government
DND Department of National Defense
DOE Department of Energy
DOF Department of Finance
DOH Department of Health
DOST Department of Science and Technology
DP Development Partner
DPWH Department of Public Works and Highways
DRR Disaster Risk Reduction
DRRM Disaster Risk Reduction Management
DRRMA Disaster Risk Reduction Management Act
DRRMF Disaster Risk Reduction Management Framework
DRRMP Disaster Risk Reduction Management Plan
DSWD Department of Social Welfare and Development
EIA Environmental Impact Assessment
EMB Environment Management Bureau
ENSO El Nio/Southern Oscillation
FMB Forest Management Bureau
GAA General Appropriations Act
GAS Government Accounting System
GDP Gross Domestic Product
GHG Greenhouse Gas
6
GII Geographic Information Infrastructure
GIZ Deutsche Gesellschaft fr Internationale Zusammenarbeit (German Society for International Cooperation)
HLURB Housing and Land Use Regulatory Board
ICC Investment Coordinating Committee (of NEDA)
IEC Information, Education, and Communication
ILO International Labor Organization
IRA Internal Revenue Allotment
IRR Implementing Rules and Regulations
IWMP Integrated Watershed Management Plan
JICA Japan International Corporation Agency
KRA Key Results Area
LCCAP Local Climate Change Action Plan
LDF Local Development Fund
LDRRM Local Disaster Risk Reduction Management
LDRRMC Local Disaster Risk Reduction and Management Council
LDRRMF Local Disaster Risk Reduction and Management Fund
LDRRMP Local Disaster Risk Reduction and Management Plan
LEDS Low Emission Development Strategies
LGC Local Government Code
LGU Local Government Unit
MDB Multilateral Development Bank
MDGs Millennium Development Goals
MDG-F Millennium Development Goal Fund
M&E Monitoring and Evaluation
MFO Major Final Output
MGB Mines and Geo-science Bureau
MMDA Metropolitan Manila Development Authority
MOU Memorandum of Understanding
MRV Measurable, Reportable, and Verifable
MtCO2e Metric Tons of Carbon Dioxide Equivalent
MW Megawatt
NAMA Nationally Appropriate Mitigation Action
NAMRIA National Mapping & Resource Information Authority
NCA Notice of Cash Allocation
NCAA Non-Cash Availment Authority
NCCAP National Climate Change Action Plan
NCF National Calamity Fund
NCR National Capital Region
NDRRF National Disaster Risk Reduction Fund
NDRRMC National Disaster Risk Reduction and Management Council
NDRRMF National Disaster Risk Reduction and Management Act framework
NDRRMP National Disaster Risk Reduction and Management Act action plan
NEA National Electrifcation Administration
NEDA National Economic Development Authority
7
NEEDS National Environmental, Economic and Development Study
NEP National Expenditure Program
NFPP National Framework for Physical Planning
NFSCC National Framework Strategy on Climate Change
NGAs National Government Agencies
NGOs Non-Governmental Organizations
NGP National Greening Program
NHA National Housing Authority
NIA National Irrigation Administration
NLUC National Land Use Committee
NAMA National Appropriated Mitigation Actions
OPIF Organizational Performance Indicator Framework
PAMP Protected Area Management Plan
PAGASA Philippine Atmospheric, Geophysical and Astronomical Services Administration
PAPs Programs, Activities, and Projects
PCAARRD Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development
PCIEERD Philippine Council for Industry, Energy and Emerging Technology Research and Development
PCF Performance Challenge Fund
PCHRD Philippine Council for Health Research and Development
PCIC Philippines Crop Insurance Corporation
PCIERD Philippine Council for Industry and Energy Research and Development
PDAF Priority Development Assistance Fund
PDF Philippine Development Forum
PDP Philippines Development Plan
PER Public Expenditure Review
PFM Public Financial Management
PhilRice Philippine Rice Research Institute
Php Philippine peso
PIP Public Investment Program
PSF Peoples Survival Fund
PSFB Peoples Survival Fund Board
R&D Research and Development
RWCSs Rain Water Collection Systems
SAFDZ Strategic Agriculture and Fisheries Development Zone
SEARCA Southeast Asian Regional Center for Graduate Study and Research in Agriculture
SEER Sectoral Efectiveness and Efciency Review
SIADP Sustainable Integrated Area Development Plan
SPF Special Purpose Fund
UNDP United Nations Development Program
UNFCCC United Nations Framework Convention on Climate Change
VA Vulnerability Assessment
WB World Bank (International Bank for Reconstruction and Development)
ZBB Zero-Based Budgeting
8
Te report, Getting a Grip on Climate Change in the Philippines
results from a Climate Public Expenditure and Institutional
Review conducted by the World Bank, the DBM, and the CCC.
Tis report benefted from extensive discussions with the Ofce
of the Presidential Assistant on Climate Change, the DA, the
DENR, the DOE, the DOF, the DOST (PAGASA, PCIEERD,
PCAARRD, PCHRD), the DPWH, the NEDA, the HLURB,
the Cabinet Cluster on Climate Change, the NDRRMC and the
City of Makati and the Province of Albay.
Tis report was written by a World Bank team co-led by Christo-
phe Crepin, Practice Leader; and Josefo Tuyor, Senior Operations
Ofcer, under the supervision of Motoo Konishi, Country Direc-
tor for the Philippines; John Roome, Sector Director, Sustainable
Development, East Asia and the Pacifc; Ousmane Dione, Sector
Manager, Sustainable Development, Philippines; and Iain Shuker,
Sector Manager, Environment, Social and Rural Development.
Te team included Ruth Maturan Cruz, Ashraf El-Arini, Isao
Endo, Carolina V. Figueroa-Geron, Eduardo Gonzalez, Ching
Jorge, Dave Llorito, Ngozi Malife, Rosario Manasan, Sara Trab
Nielsen, Reinaluz Ona, Connie Pabalan, Kiran Pandey, Julie
Paran, Nenette Santero, Maria Consuelo Sy, Catherine Vidar,
Sylke von Tadden, and George Wood.
We acknowledge with gratitude Secretary Mary Ann Lucille
Sering of the CCC and Secretary Florencio Abad of the DBM for
their guidance all throughout the process, and Undersecretary
Laura Pascua and Director Rolando Toledo of the DBM and
Assistant Secretary Joy Goco and Maria Ayn Jella Villanueva of
the CCC for their leadership and coordination role. We are grate-
ful to Secretary Elisea Gozun from the Ofce of the President,
Secretary Proceso Alcala (DA), Secretary Ramon Paje (DENR),
Secretary Manuel Roxas II (DILG), Secretary Jericho Petilla
(DOE), Former Secretary Jose Rene Almendras (DOE), Secretary
Cesar Purisima (DOF), Secretary Mario Montejo (DOST), Sec-
retary Rogelio Singson (DPWH), and Socio-Economic Planning
Secretary Arsenio Balisacan (NEDA).
A special thanks to Commissioner Naderev Sao and Commis-
sioner Heherson Alvarez from the CCC, Undersecretary Mario
Relampagos of the DBM, Assistant Secretary for Operations Luz
Cantor, Assistant Secretary Gil Montalbo, Director Ricalinda
Adriatico, Director Estrellita Bangsal, Director Soledad Doloiras,
Director Ruby Esteban and Director Teresita Salud from the
DBM, Undersecretary Segfredo Serrano, Director Agnes Miranda
and Director Silvino Tejada from the DA, Undersecretary of the
DENR and Chief of Staf Analiza Teh, Director Neria Andin,
Director Angelito Fontanilla, Director Eriberto Argete and Lilia
Rafores from the DENR, Undersecretary Austere Panadero
from the DILG, former Undersecretary Josefna Patricia Asirit,
Director Carmencita Bariso, Director Mario Marasigan, and Di-
rector Jesus Tamang from the DOE, Treasurer of the Philippines
and Undersecretary Rosalia De Leon, Assistant Secretary Maria
Edita Tan, Director Stella Laureano and Ofcer-in-Charge of the
Bilateral Assistance Division John Narag from the DOF, Assistant
Secretary Robert Dizon and Director Bernie Justimbaste from
the DOST, Director Melvin Navarro and Director Aristeo Reyes
from the DPWH, OIC-Director Sheila Marie M. Encabo, Direc-
tor Mercedita Sombilla, Director Jonathan Uy, Deputy Director
General Emmanuel Esguerra, Deputy Director General Rolando
Tungpalan and Senior Economic Development Specialist Kath-
leen Capiroso from the NEDA, Acting Deputy Administrator
Flaviniana Hilario from PAGASA, and Presidential Adviser on
Environmental Protection Secretary Nereus Acosta.
We are appreciative of the support from the Provincial Govern-
ment of Albay and their Governor Joey Salceda, as well as the
City Government of Makati and their Mayor Jun Binay, Senior
Advisor Attorney Violeta Seva, and her staf.
We are thankful for the input made by Development Partners
in the Philippines. We thank Neil Britton from ADB, Luc Le
Cabellac from AFD, Anne Orquiza and Geof King from AusAid,
Bernd-Markus Liss and Agnes Balota from GIZ, Megumi Muto
from JICA, and Amelia Supetran from UNDP for their support.
We also thank Mr. Melvin Purzuelo and Aksyon Klima, Mr.
Red Constantino and the Institute for Climate and Sustainable
Cities, Ms. Leonor Briones and Social Watch Philippines, and the
Council of Asian Liberals and Democrats for their involvement in
the course of the study and for their support.
Te report benefted greatly from its reviewers. We would like
to thank Philippe Ambrosi, Milan Brahmbhatt, Jane Ebinger,
Adrian Fozzard, Kirk Hamilton, Motoky Hayakawa, Kai-Al-
exander Kaiser, Jolanta Kryspin-Watson, and Andrea Liverani.
Valuable comments were provided by Laura Altinger, Christopher
C. Ancheta, Yolanda J. Azarcon, Victor Dato, Kathryn Hollifeld,
Chiyo Kanda, Ajay Kumar, Tony La Via, Lilanie Magdamo,
Hans Shrader, Lawrence Tang, Alan Townsend, Rogier van den
Brink, Felizardo Virtucio Jr., Samuel G. Wedderburn, and Mark
Woodward.
A sincere thanks to the editing and design team from
ICF International, led by Brad Hurley and Fatima Amon.
ACKNOWLEDGEMENTS
9
Climate change afects all of us. Te poor, however, are usually
more severely afected.
Te same could be said of countries. Te greatest challenge that
poorer countries face today is that hard-earned development
progress they have achieved in the last several decades could be
reversed in a short time because of climate change.
Te Philippines is the third most vulnerable country to weath-
er-related extreme events, earthquakes, and sea level rise. Te
countrys exposure to extreme weather conditions adversely afects
peoples lives, especially those in high-risk urban and coastal
areas. Food security is threatened as land and nursery areas for
plants, trees, and fsheries are afected by climate change. Te
livelihoods of poor communities that rely on natural resources
are hampered and their lives and properties are further put at
risk. For the Philippines to reduce poverty, accelerate economic
growth, and create jobs, it is therefore necessary to address the
countrys vulnerabilities to climate change. Tis can be accom-
plished by reducing the exposure and improving the adaptive
capacity of communities at risk.
To efectively deal with climate change, the Philippine Govern-
ment enacted the Climate Change Act in 2009. Tis law estab-
lished the Climate Change Commission (CCC) which is tasked
to coordinate and guide all policies related to climate change. Te
CCC was mandated to formulate the National Framework Strate-
gy on Climate Change and the National Climate Change Action
Plan (NCCAP). As the Chairperson of the CCC, the President
made climate change adaptation and mitigation one of fve key
results areas of his Social Contract with the Filipino people. Te
implementation of the NCCAP has begun, and the Government
is moving to establish the policies, institutions, and fnancing
needed to scale up and mainstream climate action across all sec-
tors and levels of government.
To assess gaps and accelerate implementation of the climate
agenda, the Department of Budget and Management and the
CCC sought advisory services from the World Bank to carry out
a Climate Public Expenditure and Institutional Review (CPEIR).
Te review, carried out between February 2012 and March 2013,
sought to identify innovations in policy, institutions, and fnanc-
ing of climate action, along with achievements, limitations, and
disconnects in the current approaches to addressing climate issues
and policy. It identifed process reforms that could deliver desired
climate results more efectively and enhance the quality of the de-
cision-making process. Te analysis, based on the rich set of data
gathered by the team, provides a valuable basis for the Philippines
to develop a baseline for fnancing climate change.
Te recommendations and action plan in this report complement
and reinforce the multi-faceted public fnance reform agenda that
the Government is currently implementing (e.g., by increasing
transparency and accountability in public climate fnancing, op-
erationalizing the program approach, and bottom-up budgeting).
Te operationalization of the Peoples Survival Fund can also be a
catalystnot only for putting in place systems for local climate f-
nancing, but also as a stepping stone to manage climate fnancing
at the national level.
Te reports recommendations and action plan are ofered at the mid-
point of the current Philippine Development Plan. Tey are intended
to provide timely, specifc suggestions for strategies and actions that
can be used to strengthen the Philippines framework for action on
climate change, enhance accountability, and build capacity.
It is our hope that the report will help spur all of us into action.
Secretary Mary Ann Lucille Sering
Philippine Climate Change Commission
Motoo Konishi
Country Director, East Asia and Pacifc
Te World Bank
Secretary Florencio Abad
Philippine Department of Budget and Management
John Roome
Sector Director, Sustainable Development
East Asia and Pacifc, Te World Bank
FOREWORD
10
Global climate change will continue to cause severe impacts
to global, regional, and national economies and livelihoods,
unless action is taken to build adaptive capacity of communi-
ties, increase natural ecosystems resilience to climate change,
and optimize mitigation opportunities toward sustainable
development. Climate model projections show that even if
Parties of the United Nations Framework Convention on Climate
Change (UNFCCC) comply with the emission pledges made
at the Conferences of the Parties in Cancun and Copenhagen,
global warming is set on a trajectory that is likely to exceed 3C,
with a possible 4C increase as early as 2060. Tis will cause a
non-linear path of climate-related events, leading to a wide range
of impacts afecting global, regional, and national economies
(World Bank 2013). Middle-income countries, which already
struggle to meet sustainable development goals, will experience
additional challenges as climate change halts or reverses some of
their development gains and objectives.
Global climate change
is taking its toll on the
Philippines
As the worlds third most vulnerable country to extreme weath-
er events and sea level rise, the Philippines is already feeling the
impacts of climate change (Alliance Development Works 2012).
By virtue of its location, climate, and topography, the Philippines
is exposed to a range of climate-related hazards such as typhoons,
foods, landslides, and droughts. Sixteen of its provinces are among
the top 50 most vulnerable regions in Southeast Asia (Yusuf &
Francisco 2010). Climate-related impacts are projected to increase
in the coming decades, threatening in particular:
Coastal Populations: In a 4C world, sea-level rise around
the East Asia and Pacifc region is likely
1
to exceed 50 cm
above present levels
2
by 2060, and 100 cm by 2090, with
Manila being especially vulnerable (World Bank 2013).
Climate change is expected to lead to more intense typhoons,
whose storm surges will be superimposed on higher sea levels.
In the Philippines, storm surges are projected to afect about
14 percent of the total population and 42 percent of the
coastal population (Brecht et al 2012).
Urban Populations: Informal settlements, which account
for 45 percent of the Philippines urban population, are par-
ticularly vulnerable to foods due to less secure infrastructure,
reduced access to clean water, and lack of health insurance
(World Bank 2013).
1
Likely is defned as >66 percent chance, using the modeling approaches adopted in
this report.
2
19862005 levels.
SYNOPSIS
The Philippines already experiences and will continue to face impacts from climate change. In the decades ahead,
the most serious consequences will be felt in coastal and urban areas. Severe hardships are expected in agriculture
and fsheries, leading to negative impacts on jobs and the economy. With these risks in mind the Philippine
Government has initiated signifcant climate reforms, establishing a basis for transformation. To assess gaps and
accelerate implementation of the climate reform agenda, in 2012 the Department of Budget and Management and
the Climate Change Commission sought advisory services from the World Bank to carry out a Climate Public
Expenditure and Institutional Review (CPEIR). Carried out at mid-term of the frst phase of the National Climate
Change Action Plan, the Philippine Development Plan (20112016), and the current Administration, this review comes
early enough to help guide the fnalization and operationalization of the frst phase of the climate reform agenda.
This Executive Report summarizes the fndings and recommendations of the CPEIR, including an analytical snapshot
of the policies, institutions, and expenditures for undertaking climate action in the Philippines, and recommendations
to contribute to a successful implementation of the Philippine climate reform agenda. The Extended Technical
CPEIR Report, which provides more detailed background, analysis, and recommendations, is available online at
www.worldbank.org/reference.
11
Agriculture: Climate-related impacts are expected to reduce
agricultural productivity in the Philippines. Te annual
damage to agriculture from typhoons, droughts, and foods
has already reached Php 12 billion, equivalent to 3 percent of
total agricultural production (CCC 2011). A 30 cm sea-level
rise by 2040 is projected to reduce rice production in the
regions major rice growing regionthe Mekong River Del-
taby about 2.6 million tons per year, or about 11 percent
of 2011 paddy production (World Bank 2013).
Fisheries: Warming oceans and ocean acidifcation afect
coral reefs, which serve as important feeding and spawning
grounds for many fsh species that support the livelihoods of
fsher folk (World Bank 2013). Even minor changes in ocean
dynamics can cause severe impacts. For example, during
the 1998 to 1999 ENSO event, the live coral cover of the
Philippines decreased by half, diminishing fsheries yield by
more than Php 7 billion (Center for Environmental Concerns
Philippines 2011; Santos, Dickson, and Velasco 2011).Te
projected changes in maximum catch potential in a 4C
world range from a 50 percent decrease around the southern
Philippines during the 2050s to a 616 percent increase
around the northern Philippines (World Bank 2013).
Non-climate factorssuch as fast-growing environmental
deterioration, unsustainable development practices, and
population growth and movementaggravate climate vul-
nerability in the Philippines. For example, widespread mining
and deforestation in Mindanao were blamed for recent fash
foods, including those produced by Tropical Storm Sendong in
2011, which cost the lives of about 1,000 people (Iqbal 2011). Te
neglect of drainage systems and the lack of long-term planning
and enforcement exacerbated the foods in 2012, which swamped
nearly all of Manila (Macaraig 2012).
While building resilience, the Philippines must also ensure
that greenhouse gas emissions remain in check. Tough a mi-
nor global contributor to climate change globally, the Philippines
greenhouse gas emissions rank in the top 25 percent of low and
middle income countries, with signifcant increases projected in
the coming decades. Emissions from the energy sector are pro-
jected to quadruple by 2030, and the transport sector is expected
to double its emissions. Te underlying data for these projections
need to be updated through the ongoing low-carbon studies and
through the next National Communication to the UNFCCC.
It is imperative to
fully implement climate
reforms now
Given the Philippines vulnerabilities, it is critical that the
country implements the measures needed to protect itself
against ever-increasing climate change and variability.
Trough the Philippines Development Plan (PDP), the Philippines
aims to accelerate annual economic growth to 78 percent.
Unless it is planned and carried out with accommodation to
future climate change in mind, the development plan could be
locked into infrastructure development, land use changes and
urbanization processes that are more vulnerable to climate risks.
Te process of developing institutions to implement climate re-
forms can be lengthy; the time to start acting is now.
Since many climate change activities are good development
policies, implementing the Governments climate reform pro-
gram contributes to broader development goals. For example,
reforms in the energy sector promoting renewable sources and
energy efciency contribute directly to energy security and can
lower energy costs, thereby also increasing competitiveness. In
agriculture, adaptation activities that conserve water and improve
soil quality will enhance water resources management and help
alleviate food insecurity. Similarly, signifcant opportunities exist
to increase employment in the felds of agriculture, infrastructure,
and energy. Labor-intensive activities, such as the development of
small-scale sustainable and climate resilient farming activities or
retroftting infrastructure for food control, will build resilience
while increasing employment opportunities.
A reformed policy
and institutional
structure adds value
Te Philippine Government has engaged in a comprehensive
and strategic climate reform agenda focused on integrating
climate change into national and local policy formulation
and development. Enacted in 2009, the Climate Change Act was
passed to strengthen, integrate, consolidate, and institutionalize
previous specifc sector-based government initiatives. Te Act
called for the formulation of a National Framework Strategy on
Climate Change (NFSCC), which defnes the overall param-
eters for developing a National Climate Change Action Plan
(NCCAP). Te NCCAP serves as the Governments road map for
climate action and the lead policy document guiding the climate
agenda at all levels of government.
12
Te Governments climate change policy agenda emphasizes
a shift to adaptation, as well as convergence between climate
change adaptation and disaster risk reduction and manage-
ment. Prior to the passage of the Climate Change Act, climate
activities in the Philippines focused on mitigation. Now, six out of
the seven NCCAP priority areas are directly related to adapta-
tion. Te new agenda also clearly refects convergence on climate
change adaptation and disaster risk reduction and management
(DRRM), by mainstreaming DRRM and CCA in development
processes. Tis is an important step toward focusing on preven-
tion and protection instead of recovery and rehabilitation.
Te climate change policy agenda is supported by the
establishment of centralized national institutions aimed at
stronger coherence and coordination. Several new institutions
have been created or are at various stages of mobilization, includ-
ing the Climate Change Commission (CCC), the Cabinet Cluster
on Climate Change (CCCC), and the Peoples Survival Fund
Board (PSFB). Trough coordination with existing oversight agen-
cies like the DBM and NEDA, the new institutions were placed at
the center to guide, coordinate, and monitor Departments at the
national leveland Local Government Units (LGUs) at the local
levelwith formulating and implementing climate action.
Te climate reform agenda builds a foundation for consistent
reforms at all levels of government, but the Philippines has
much to lose if the Government fails to deliver on the reforms
already begun. At the midpoint of its term, the current adminis-
tration aims to fnalize frst-phase reforms focused on establishing
readiness, and to start preparing for the second phase. While the
country is moving in the right direction, efective implementation
of the climate agenda is being hampered by a number of barriers
and gaps. Tese must be addressed now to ensure successful im-
plementation of the reforms underway.
Synergies between national/
sector/local policies are key
Te Governments development plans are only partially
aligned with the NCCAP. Incorporating the NCCAP into
national and local development planning processes is important to
ensure that national climate change goals and priorities are trans-
lated into actions and implemented. Te NCCAP priorities are the-
matic in nature, often cutting across the sector-based focus of the
development plans. Tis hampers coordination and convergence of
climate activities across Departments and between administrative
levels, and renders monitoring of climate activities difcult.
Te NCCAP and the PDP are only partially aligned. Even
though the PDP was launched as the NCCAP was still being
developed, fve chapters in the PDP include extensive discus-
sions on climate change, particularly in relation to adaptation
and disaster risk reduction and management. However, some
immediate NCCAP outcomes are excluded from the PDP
while others lack detailed articulation of supporting activi-
ties. Since both plans are scheduled for updates in mid-2013,
an opportunity exists for improved alignment.
NCCAP activities can be only partially linked to the Key
Result Area-5 (KRA-5) programs, activities, and projects
(PAPs). Tis is in part because a range of the NCCAP
activities are not yet funded, and in part due to a diferent
classifcation system of climate PAPs used for KRA-5 and the
NCCAP. PAPs have been classifed under KRA 1-5 based on
the primary objective and mandate of the Departments or
Agencies. As a result, preference has been given to attribute
the climate change related PAPs to other KRAs (e.g., poverty
reduction or growth) instead of KRA-5. For instance, import-
ant adaptation measures, such as food control projects, were
tagged as KRA-3 as they were deemed intended for economic/
infrastructure development and thus are not captured under
KRA-5. Ideally, climate PAPs under KRA-5 should be aligned
to the NCCAP. In practice, the linkage between the NCCAP
and KRA-5 is not straightforward: some KRA-5 PAPs could
be linked to the NCCAP activities while others are not cov-
ered by the NCCAP. Likewise, not all NCCAP activities are
included under the KRA-5. Some activities could be found
under other KRAs, and a range of them are not included at all
as their funding has not yet been mobilized.
Te NCCAP has not yet gained enough traction among
the CCCC Department members, as a clear link with the
KRA-5 is not yet established. Departments performance is
measured and monitored against their Major Final Outputs
using the Organizational Performance Indicator Framework
indicators,. In addition, following the introduction of the
KRAs, the Departments were asked by the CCCC to prepare
work programs for 20112016 that include funded climate
PAPs and future funding needs. Tey were also asked by
the DBM to annually identify PAPs that contribute to the
KRAs. Ideally, the work programs should be used as a tool
to support the implementation of the NCCAP and feed into
the KRA-5. In practice, the work programs were not linked
to the NCCAP outcomes and activities and have also not
been used to identify climate PAPs for the KRA-5. Given
these shortcomings, the Departments have focused primarily
in recent years on identifying climate PAPs for the KRA-5
and have had no incentives to update their work programs to
ensure a better NCCAP alignment and implementation.
Te Climate Change Act requires LGUs to complete
Local Climate Change Action Plans (LCCAPs). Such new
requirements impose signifcant administrative burdens and
pressure on LGUs, especially when clear guidelines are not
available on how to translate the NCCAP into LCCAPs. To
13
lighten this load, the CCC encouraged LGUs to incorporate
their LCCAPs into the CDPs and CLUPs and is working
toward developing supporting guidelines.
Climate change adaptation and disaster risk reduction
management policies have converged at the policy level, in
that both consider adaptation as a mechanism for addressing
climate-related disaster risk. Te linkages between adaptation
and disaster risk reduction are recognized in the conceptual con-
vergence of the Climate Change Act and the National Disaster
Risk Reduction Management (NDRRM) Acts. Te NDDRM
Act led to a paradigmatic shift away from disaster response to
prevention. It revamped both the National and Local Calamity
Funds, creating the National Disaster Risk Reduction and
Management Fund (NDRRMF) and the Local Disaster Risk
Reduction and Management Fund (LDRRMF), from which
70 percent of appropriations should go to disaster prevention
activities and the remaining 30 percent to support the Quick
Release Funds for relief and recovery programs.
Tough greenhouse gas emissions reduction activities are
being carried out, there is currently no common strategy
to direct the roles and responsibilities of institutions in
fnancing low-carbon development and green growth. So far,
activities have been carried out on a fragmented basis by diferent
Departments and Agencies, and to some extent by the private
sector. Tis piecemeal approach has made it difcult to prioritize
activities and maximize efectiveness.
Climate institutions
need joint and consistent
strategic direction
Te broad scope and many responsibilities of the CCC hamper
its ability to streamline implementation of the NCCAP and
operationalize some of its tasks. Te CCC is solely responsible
for a number of key functions, such as leading climate policy mak-
ing and coordinating, monitoring and evaluating climate programs
and action plans. Because of its wide array of responsibilities, the
CCC has not been able to divert enough resources to advocate
efectively for immediate action on climate change.
Te CCC is jointly responsible for several tasks with other
agencies, yet its efectiveness is limited by a lack of clear or for-
malized roles and relationships. In particular, clarifying the rela-
tionship with the NEDA and DBM is essential to ensure efective
coordination and integration of the climate change, poverty reduc-
tion and development agendas. Similarly, while the CCC provides
secretarial services to the CCCC, it remains without much
decision making powers, which have slowed the integration of
the NCCAP at the highest level of government. Te dual support
services of the DENR and the CCC have often led to a duplication
of secretariat services in the CCCC, and competing demands on
the CCC staf have limited their ability to provide needed support
to the Cabinet. Some steps are being taken to clarify these roles,
but more work is required to establish a better balance between
executive agency priorities and strategic, high-level goals.
Te CCC is a national agency with limited local presence,
and lacks the capacity to engage with all LGUs. Several
entry points have proven useful for increased coordination with
LGUs. For example, the CCC can take advantage of establishing
relationships to expand coordination through NEDAs board
committees. Te CCCs relationship with the Housing and Land
Use Regulatory Board can be used to assist with integration of
adaptation in local development plans.
While new institutions are being mobilized to fll the existing
institutional gaps in strategic climate fnancing oversight and
coordination, signifcant gaps remain. Operationalizing the PSF
provides an opportunity to develop and strengthen climate fnanc-
ing institutions and policies while also readying the Philippines
to receive climate fnancing. Tis entails developing national and
local institutions that can meet fduciary standards at the project
and the portfolio levels and can efectively plan, prioritize, and
implement climate action. Te primary focus of the PSF Board
is oversight and coordination of climate fnancing for adaptation
at the local level. Institutional gaps remain at the sectoral and na-
tional levels for overall climate fnancing coordination, including
mobilization of additional resources and adoption of appropriate
market- and non-market-based fnancing instruments. Te Cli-
mate Finance Group, which is currently an ad-hoc informal group,
can play an important role in flling this gap to create the enabling
environment for climate fnancing readiness at the national level.
No clear organizational model exists to execute and deliver
climate results across the various Departmental structures
and needs. Te organizational models to address climate issues
vary across Departments; the DA and the DENR are the only
Departments with internal climate units. Te organizational
structure of Departments is an important determinant of their
efectiveness in pursuing or prioritizing climate objectives.
Coordination on disaster risk reduction and climate change
adaptation is difcult due to overlapping responsibilities and
action plans. Te LGUs are mandated to develop local disaster
risk reduction management plans. Te CCC and the NDRRMC
are required to work with each other on their engagement with
the LGUs, and the two Agencies have signed an MOU afrming
their collaboration to harmonize and coordinate with each other
in supporting the LGUs, and to develop a joint work plan. How-
ever, in practice there are no guidelines on how to operationalize
their agreement to coordinate.
14
Lack of institutional capacity,
knowledge generation
and management, and
monitoring and evaluation
are key barriers
Tere is a great need for increased institutional capacity on
climate change. Departments and Agencies that implement the
Government climate agenda require knowledgeable and skilled
staf. At the local level, the development of climate change plans
and activities imposes signifcant pressure on LGUs, which are
already burdened by other pressing development needs. In some
cases local progress is hampered by lack of technical capacity, such
as guidelines and simplifed tools that can be used to transform
national policies to local policies.
Knowledge generation and management are needed to com-
plement capacity building. Insufcient access to information
and knowledge has been a persistent issue across Departments and
at the local level. Some information is available through Govern-
ment agencies, but systems could be enhanced signifcantly.
Monitoring and reporting on NCCAP implementation
progress has been challenging. Te CCC has been assigned the
responsibility of consolidated monitoring of progress on NCCAP
implementation. However, there is no guidance on how progress
is to be monitored. A lack of agreed-upon indicators and targets
has hindered the process of monitoring the integration of the NC-
CAP across development plans at diferent levels of government
and across Departments, which impedes an evaluation of results
across climate PAPs. Te Government has introduced a unifed
and integrated Results-Based Performance Management System
across all Departments and Agencies within the Executive Branch
to address existing shortcoming, with expected improvements in
reporting and auditing systems.
Government fnancing
of climate action has
increased, with a priority
for a few large-scale PAPs
Sources of fnancing for climate change activities stem pri-
marily from domestic sources through the General Appropri-
ations Act (GAA), Special Purpose Funds (SPFs), and Special
Accounts in General Funds. Domestic resources have funded on
average 82 percent of climate expenditures in the Departments
assessed between 2008 and 2011. Other than the Department
of Public Works and Highways (DPWH), about 94 percent of
the climate expenditures in Departments are fnanced from local
sources. Most Departments are funded from the GAA, except for
the Department of Energy (DOE), where a third of funding is
from Special Accounts.
Externally funded sources have played an important catalytic
role as well. Te bulk of aid from development partners directed
to climate change supports food control protection and is man-
aged by DPWH, accounting on average for more than a third
of the Departments total climate expenditures or for 80 percent
of total development partner aid. Most other Departments have
benefted by small-scale, innovative grant-funded climate projects
that are often of budget. Tese have been instrumental in pilot-
ing initiatives and supporting investments to assist Government
in developing climate action at the national and local levels. Giv-
en the range and diferent levels of development partner support
of the Governments climate reform agenda across several sectors,
the management, coordination, and mobilization of aid has been
a challenge.
Climate budget appropriations have increased signifcantly,
refecting a heightened concern for climate change. Between
2008 and 2012, climate appropriations increased by two and a
half times in real terms, from Php 12 billion to Php 35 billion,
now accounting for 1.9 percent of the national budget. Over the
period, climate appropriations have grown, by 26 percent annual-
ly on average in real terms, outpacing the growth of the national
budget (around 6 percent). Tis is mirrored by faster growth of
climate appropriations in absolute and relative terms across De-
partments in comparison to their total appropriations.
Te upward trend in climate appropriations is due to in-
creased allocations to a few major PAPs, concentrated within
a few Departments and Agencies. Te distribution of climate-re-
lated public resources refects the Governments commitment
to prioritize major investments for food control protection
(DPWH) in the face of more severe periodic fooding events and
the upscaling of the National Greening Program managed by
DENR in recent years. Other increases in budgetary allocations
can be attributed to DOEs funding of the Electric Vehicle Project
in 2013 and DAs appropriations in favor of a major climate PAP
managed by the Philippine Rice Research Institute and a variety
of smaller PAPs supporting the promotion of organic agriculture.
Te trends in climate appropriations are refected across the
NCCAP priority areas, though most increases allocated to the
NCCAP priority areas primarily supported activities related to
Water Sufciency, followed by Ecosystem and Environmental
Stability and Food Security. Funding for all of the NCCAP pri-
orities has been steadily rising in the past fve years, with the largest
growth deriving from investments to the NCCAP priority on Water
Sufciency, from about Php 6 billion to nearly Php 20 billion.
15
Financing gaps show a
mixed picture of the
funding adequacy of
selected climate PAPs
A preliminary assessment of climate fnancing gaps indicates
that several large climate activities identifed in the PIP
are either underfunded or not funded in the 2013 budget.
An assessment of four selected sectors (agriculture and fshery,
water, environment and natural resources, and energy) in the
PIP against the GAA revealed that appropriations for several
PAPs were not mobilized in the 2013 budget. In the agriculture
and fshery sector, signifcant funding was pledged in the PIP for
the development and implementation of the National Farmers
Registry System and Inventory System of Agriculture and Fishery
Investments, but the respective appropriations were not secured.
Similarly, in the energy sector, two major PAPs with mitigation
co-benefts (Renewable Energy Project and Ocean-Termal Ener-
gy Conservation Project) included in the PIP for 2012 and 2013
were not funded in the 2013 GAA. For the environment and
natural resource sector, the Clonal Nursery project was delayed
by a year and falls short by Php 400 million in the 2013 GAA
compared with the respective commitments in the PIP.
Many smaller activities, including capacity development, were
also underfunded or not funded in 2013. From an NCCAP pri-
ority area perspective, capacity development, which is included in
the various NCCAP priorities as well as the overall NCCAP prior-
ity to fund knowledge and capacity development, remains under-
funded. Tis needs to be monitored, considering the signifcant ca-
pacity development needs of the Departments and Agencies. Some
evidence suggests that small-scale activities for ecosystem stability
services might lack funding or might not be sufciently funded.
For instance, capacity building, training, or the mainstreaming of
CCA in planning tools to be conducted at a pilot basis have not
yet been scaled up. Te assessment of the water sector showed that
funding for water harvesting technologies or the profling of water-
sheds and river basins is small and was not funded in 2013. In the
case of the agriculture and fshery sector, signifcant opportunities
to scale up include research on climate-resilient crop varieties,
water conservation, establishment of feld schools, and the set-up
of a climate database that informs technical and planning units on
location-specifc climate risks at the DA.
LGUs are action-oriented, but
sources of funding available
are fragmented and their
available amounts are limited
LGUs most vulnerable to the impacts of climate change have
the greatest need for public support, yet have the least capacity
to provide support under current revenue-sharing arrange-
ments. Te provinces and municipalities at greatest risk of being
afected by climate hazards are on average poorer, with lower total
income per capita. In the aggregate, about 70 percent of LGU
income is derived from the Internal Revenue Allotment (IRA), a
direct transfer of resources from the national government accounts
to LGUs. Te amount of the transfer to each LGU depends on its
area and population and not on the level of its vulnerability. Te
poorer LGUs rely on the IRA for nearly 90 percent of their income.
Assessing local climate expenditures is challenging, as fund-
ing is highly fragmented due to diferent funding sources.
Sources of funding for Climate PAPs at the local level have difer-
ent sets of rules and processes, eligibility criteria, and cost-sharing
requirements, making it difcult for LGUs to plan, mobilize
resources, and monitor and report on results.
Climate PAPs often compete against the many other develop-
ment priorities of LGUs. Te Local Government Code provides
that the LDF can only be used to fnance projects that are explicitly
identifed in the Local Development Plans (CDP and CLUP). Most
LGUs are already challenged by other development needs, such as
high poverty levels and environmental deterioration, which may
sometimes take priority. Tis highlights the need to mainstream
climate change in local development planning.
Climate appropriations
are adaptation-focused,
but mitigation funding
is rising faster
Nearly three-fourths of climate budget appropriations since
2008 have been directed toward adaptation interventions,
though the share of appropriations directed toward mitigation
has grown faster on average. From 20082013, nearly 72 percent
of climate appropriations have been directed to PAPs that provided
adaptation benefts while about 18 percent have been directed to
PAPs with mitigation benefts; the remaining 10 percent fnanced
PAPs that support both mitigation and adaptation. Appropriations
for mitigation PAPs have grown at an average annual rate of 46
percent, more than three times as fast as adaptation PAPs, which
grew at an average annual rate of 15 percent. As a result, the share
16
of appropriations directed to adaptation has dropped to 64 percent
in 2013 (from 76 percent in 2008), while the share of appropria-
tions for PAPs with mitigation benefts rose to 30 percent.
Despite increased appropriations to the national Calamity
Fund in recent years, most of the resources continue to be
directed to response, recovery, and rehabilitation eforts
instead of disaster prevention. Trough 2013, the GAA has not
included any appropriations for the NDRRMF. Instead, appropri-
ations have continued for post-disaster relief, recovery, and recon-
struction through the Calamity Fund. Te Calamity Fund can
support disaster prevention activities, but has rarely done so over
the past years. According to the DBM, disaster prevention should
be funded as part of the regular budgets of the Departments, but
the Department have yet to develop systems to incentivize climate
change adaptation and disaster prevention actions.
Complex tools make
planning and prioritization
challenging
Te planning and prioritization process in Departments could
be strengthened by the use of improved decision-making sup-
port tools on climate change activities. For example, vulnera-
bility assessment (VA) tools provide useful information to support
prioritization of adaptation actions at the local level. However, they
are often too technical and complex for use by LGUs and need
to be better integrated into disaster risk tools, which are focused
primarily on current risks. Environmental impact assessments,
which are used for large PAPs, are completed downstream of the
decision-making process and often do not provide information
early enough to infuence project design. In contrast, the climate
screening tool being developed by the DENR provides upfront
assessment of PAPs to guide project manager decisions, but the tool
is not yet widely used. While decision tools are not used systemati-
cally to assess and integrate the development co-benefts of climate
action and to prioritize such action, standardizing their use could
provide additional public support for them.
Innovative tools and
processes introduced
through the PFM reforms
enhance budget planning
and prioritization
Inconsistencies of climate priorities across national plans, sector
strategies, and local development plans hamper the main-
streaming of climate PAPs in the budget. In recent years, there
have been increasing eforts by the Government to integrate adap-
tation- and mitigation-related issues into planning tools at national
and subnational levels. However, challenges remain to ensure that
climate actions are prepared and prioritized in budget planning.
Screening guidelines can facilitate the inclusion of climate
action in budget planning at national and subnational levels.
While the recently developed screening guidelines will focus
primarily on tagging climate PAPs, the tool cannot yet be used for
prioritizing PAPs. Most Departments and LGUs do not yet appear
to be making use of internal policies, budget calls, directives, or
memorandums to promote the identifcation and prioritization of
climate activities in the budget or to integrate climate risk consid-
erations in infrastructure vulnerable to weather extremes.
Te adoption of new budgeting tools and processes through the
Governments PFM reforms ofers unique opportunities to en-
hance climate planning and prioritization. Te Program Approach
promotes convergence and greater coordination of the Departments
climate activities. Te efectiveness of this approach will depend on
the Governments ability to address some problems such as the clarity
of tasks and responsibilities; the coordination between the DBM,
CCC, and the eight involved Departments; and the uneven technical
capacity of staf. Te Bottom-up Budget (BUB) was developed to
respond to the development needs of poor municipalities and the
Governments poverty reduction goals, and it ofers an opportuni-
ty for local communities to mobilize funding for climate-related
activities. Potential challenges could arise regarding the selection of
activities and the capacity of the municipalities to implement them.
A closer look at the DA and the DENR showed that both face many
reporting requirements and limited capacity to use reported data for
strategic planning purposes. Te introduction of a new Unifed Ac-
count Code Structure and Results-Based Management Performance
System are expected to enhance reporting of mid-year expenditures
and evaluations, but this is expected to materialize in the medium
term. Te recently introduced Zero-Based Budget approach ofers an
opportunity to evaluate the implementation of major climate PAPs,
though this needs to be pursued more consistently.
The Way Forward
Te recommendations of the review aim to consolidate the
strategic direction of the NCCAP and set the stage for scaling
up climate action over the remaining two phases of the
NCCAP. Te goals for the remainder of the Administrations
term should be to:
i. Ensure that the enabling environment is frmly in place by
completing and implementing the remaining pieces of the
core climate change reforms;
ii. Formulate, enact, and support complementary sector and
local-level policy and institutional reforms;
17
iii. Enhance planning, prioritization, design, and reporting of
climate programs, activities, and projects to improve their
efectiveness; and
iv. Trough the above reforms, increase efciency of resource
use and provide support for higher levels of fnancing.
Tese recommendations, together with the Strategic Action
Plan, are anchored to the Governments climate reform
agenda through a framework that includes three pillars: (1)
Strengthening the Planning, Execution, and Financing Frame-
work for Climate Change; (2) Enhancing Accountability through
Monitoring, Evaluation, and Review of Climate Change Policies
and Activities; and (3) Building Capacity and Managing Change.
Each of these pillars includes a set of objectives (eight in total) and
underlying activities, as described below.
Pillar 1: Strengthening the Planning, Execution,
and Financing Framework for Climate Change
Te three objectives under this pillar aim to address a major weak-
ness in the present policy and budget institutional framework: the
lack of a mechanism that unifes all climate change activities.
Te frst objective under this pillar aims to strengthen
the budget planning and execution framework to better
manage climate PAPs. Tis entails integrating climate change
into the budget planning process, such as budget calls and
MTEF; making systematic use of management tools, such as
climate screening guidelines to identify and tag climate PAPs;
more efectively utilizing new opportunities created by PFM
reforms, such as the Program Approach; and developing and
adopting new tools for prioritization of climate activities in the
budget planning process. Te CCC and the DBM developed
climate-screening guidelines to tag PAPs aimed at climate ad-
aptation and mitigation. Te guidelines should be updated and
implemented on a regular basis going forward, based on clearly
defned processes. Additional activities include comprehen-
sive and harmonized mainstreaming of climate priorities and
activities in national and sector plans, strategies, and budgets,
and the monitoring of ongoing reform eforts that aim to
strengthen the reporting and evaluation of expenditures.
Te second objective under this pillar would align plans
and strengthen implementation to achieve climate change
goals. Tis entails establishing a shared climate program by
aligning NCCAP priorities with national plans and policies (the
PDP, PIP, KRA-5) as well as Department work programs and
local plans. It also involves the development of a results-oriented
operational business planincluding indicators and targets,
and refecting the shared programfor subsequent phases of
NCCAP. While planned updates to the PDP and the NCCAP
in 2013 provide opportunities to align these plans, there is still
a need to defne what should be included in the KRA-5 classi-
fcation. Te Department work programs can be strengthened
to include NCCAP priorities in three areas: work program
convergence across Departments (e.g., through the Program
Approach); sector policy reform; and improved design and
execution of PAPs (e.g., establishing clear objectives and targets,
improved management of risks and uncertainty, increased
convergence, and increased recognition of co-benefts). Te
policy convergence on CCA and DRRM needs to be refected
in implementation strategies, institutional arrangements, and
fnancing by simplifying and integrating the vulnerability and
disaster risk assessment tools so that they focus on short- to
long-term climate risk management; developing common indi-
cators for monitoring progress; and standardizing reporting on
climate-related disaster activities. In addition, at the local level,
climate change needs to be systematically incorporated into
CLUPS and CDPs as well as Annual Investment Plans, with
strengthened guidance from CCC. Similarly, the formulation of
a national low-emission strategy, together with the development
of monitoring, reporting, and verifcation systems; systems for
collecting data; setting baselines; and establishing regulatory
institutions is essential for optimizing mitigation opportunities.
Te third objective under this pillar aims to rationalize
and harmonize climate fnancing instruments. Tis entails
establishing strategic and complementary rules and eligibility
criteria for climate change fnancing at the local level across
the diferent sources of fnancing (e.g., PSF, LDRRMF, and
LDF) toward improving targeting, reducing fragmentation,
and increasing transparency and efectiveness of these fnanc-
ing instruments. Te PSF Board could lead such an efort
through the examples it sets in operationalizing the PSF and
through the convening power resulting from its size and in-
stitutional visibility. Gaps need to be flled in the institution-
al arrangement for mobilizing additional resources to support
mitigation and adaptation action at the national and sectoral
levels, and in the development and adoption of market-based
instruments. While the DOF has a powerful infrastructure
to help mobilize and coordinate domestic and international
resources, including for leveraging private sector resources,
these need to be coordinated with CCC, NEDA, and DBM.
Development Partner support for the Governments climate
reform agenda could be strengthened through greater coor-
dination and use of the programmatic approach orchestrated
through the Philippine Development Forum.
Pillar 2: Enhancing Leadership and Accountability
through Monitoring, Evaluation, and Review of
Climate Change Policies and Activities
Te second pillar aims to strengthen leadership and accountability
across the CCC, oversight Agencies, and Departments. Clearly
defned institutional roles and responsibilities are essential for
fostering leadership that efectively facilitates the translation of
policies into actions and results. In this context, good use can be
made of efective champions of climate change policy and practice.
Te frst objective under this pillar is to enhance the CCCs
leadership role in monitoring and communicating climate
change performance by strengthening the annual CCC
18
review of climate change implementation. Te CCCs
monitoring and reporting of NCCAP implementation could
be improved in three areas: First, the annual implementation
progress report needs to include desired goals of the coming
year, assess the achievements relative to the goals for the prior
year, summarize key issues leading to performance shortfalls,
and recommend actions to overcome them. Second, the CCA/
DRRM agenda remains uncoordinated but could be improved
if the CCC consolidated its reporting of all climate-related di-
saster prevention to provide a comprehensive picture. Tird, the
CCC needs to establish a system to review LCCAPs and their
integration into local development plans, as well as to generate
lessons learned that can be used to improve local planning.
Te second objective under this pillar aims to strengthen
coordination between the CCC and Oversight Agencies
and Departments by convening a Champions Group;
operationalizing the terms of reference for the CCC Advi-
sory Board members; and strengthening coordination be-
tween the CCC, national and local DRRM councils, and
the PSF Board. A key step in facilitating greater coordina-
tion between the Agencies (CCC, NEDA, DBM and DOF)
responsible for overseeing implementation of the most critical
policy instruments afecting climate change is convening a
Champions Group consisting of these Agencies to lead by
example. Te Champions would work together based on a
terms of reference that includes clear enforceable targets, roles
and responsibilities, and accountabilities that could establish
the norms for climate change governance. Areas where the
relationship between the NEDA and the CCC could be clari-
fed include (a) setting entry points for updating the PDP and
the NCCAP to ensure consistency, and (b) establishing re-
view criteria for the PSF consistent with updated ICC review
criteria that refect climate considerations. With respect to
the CCC and the DBM, areas for coordination include up-
dates of the climate screening guidelines and integrating the
CCC inputs into the budget process. Similarly, in relation to
the DOF, the role of the CCC in identifying fnancing needs
and the role of the DOF in mobilizing fnancing need to be
clarifed. Te CCC also needs to strengthen coordination
with national and local DRRM Councils and the PSF Board.
Te third objective under this pillar is to strengthen moni-
toring in the Departments and the LGUs. Te development
of a consistent set of climate performance indicators, supported
by measurable targets to monitor progress, will further enable ac-
tivities across the government to be clearly focused and aligned.
Te CCC could support the Departments to develop such
indicators and support their inclusion in the currently developed
RBPMS in consultation with DBM, which is leading the inte-
gration efort on the various monitoring and accounting systems.
At the local level, climate activities could be reported by the
LGUs in their Annual State of the Local Governance Report.
Pillar 3: Building Capacity and Managing Change
Te third pillar is focused on ensuring that the CCC, Oversight
Agencies, Departments, LGUs, and the public are informed and
have the capacity to undertake climate action proactively.
Te frst objective under this pillar is focused on building
staf skills through training, incentivizing knowledge
generation and sharing, and facilitating access to knowl-
edge to overcome the signifcant capacity gap in Over-
sight Agencies, Departments, and LGUs. Staf training to
raise capacities would speed implementation of the climate
reform agenda. Government agencies, in consultation with
the CCC, should develop staf training programs in climate
change technology and administration, and adapt business
processes to incorporate these skills. Staf training needs to
be complemented with eforts to incentivize knowledge gen-
eration and facilitate knowledge sharing. Programs, activities,
and projects under implementation can provide powerful
lessons and data to all areas of government that are involved
in climate activities. Incentives should be provided to help
staf extract lessons, categorize and organize information, and
synthesize lessons learned to improve dissemination. Internal
knowledge can be complemented with other sources of
knowledge, such as through a virtual network of practitioners
or through the establishment of Centers of Excellence. Both
internal and external knowledge need to be updated regularly
in information portals or knowledge repositories, and staf
accessibility improved to enable informed decision making.
Te second objective under this pillar is to raise public
awareness on climate change and strengthen support for
the climate reform agenda. Te majority of Filipino people
are already knowledgeable about climate change, and are per-
sonally taking actions to address climate change risks or reduce
emissions. Raising public awareness through a targeted infor-
mation, education, and communication campaign can increase
the adaptive capacity of the most vulnerable populations. Civil
Society Organizations (CSOs) serve a particularly important
role in ensuring implementation of the climate change agenda
by raising awareness of the issue, building trust in commu-
nities, and exerting pressure for increased transparency. Tis
helps garner the necessary popular support for climate change
programs and the current reform agenda. Te quality of CSO
participation can be strengthened by providing easy access to
knowledge repositories and information portals.
19
Climate change is occurring now and will intensify in the
next few decades, threatening in particular developing na-
tions, with the Philippines being one of the most
vulnerable countries in the world. Te global mean
temperature and sea levels have increased gradually since
pre-industrial times, with the largest changes occurring in the
past few decades. Te frequency of heavy precipitation events
has increased over most land areas, along with more intense and
longer droughts, leading to severe impacts on human lives as
well as global, regional, and local economies. Te Philippines is
already experiencing temperature increases; sea-level rise; stronger
storms, foods and droughts; and ocean acidifcation, all of which
will intensify and afect subsistence livelihoods as well as urban
and coastal areas. Tese impacts will put pressure on jobs and the
economy, increasing the social vulnerability of poor communities.
Models project that global average temperatures may very likely
increase by as much as 4C within this century, which will lead
to non-linear and unpredictable weather patterns. While it may
I. INTRODUCTION
20
be technically possible to hold warming below 2C, doing so will
require a commitment by all governments to set their countries
on a low-carbon, green-growth development path. Yet, even a 2C
increase will require signifcant action to build resilience against
climate impacts.
Climate-related impacts will put additional pressure on de-
velopment, and may halt and in some cases reverse gains from
development activities. Te Philippines ambitious development
goals are at risk unless signifcant measures are taken to increase
climate resilience. Many development activities implemented
in the past few decades may not have taken climate change into
consideration. For example, water management and agricultural
activities designed only with past or current climate conditions
in mind may fail to meet food security and water supply goals in
the event of increased droughts. Some coastal infrastructure and
settlements may not have taken into account the threats from
sea-level rise, and eforts to protect coral reefs from pollution may
be hampered by the efects of ocean acidifcation.
Climate change and development are interconnected and
should be addressed symbiotically; most activities to address
climate change also advance the development agenda. Re-
sponding to the risks from climate change creates opportunities
that beneft the Philippine economy and society. Many of the
measures that could be taken to adapt to climate impacts are
also good development practices, increasing the resilience of
communities and vulnerable populations to current weatherre-
lated disasters and bringing signifcant benefts to agriculture and
urban and coastal areas. Similarly, the prospect of growth in the
transport and energy sectors could create opportunities for the
development of renewable energy and the implementation of ener-
gy-efcient technologies, which can increase energy independence
and reduce costs.
Recognizing the challenges posed and opportunities created
by climate change, the Philippine Government has put for-
ward a comprehensive and strategic climate reform agenda.
Carried out through three six-year phases from 20112028, the
climate change agenda focuses on transforming the climate poli-
cies and the institutions that support it to better plan, prioritize,
execute, monitor, and report on climate change expenditures
and activities, thereby achieving sustained goals. Te frst phase
focuses on creating an enabling environment and readiness, with
climate change recognized as one of fve key results areas in the
Government social contract. Trough the Climate Change Act,
the country has enacted a set of climate-specifc laws comple-
mented by the creation of climate-specifc institutions. Tese
institutions aim to integrate and coordinate climate change at all
levels of governmentnational, regional, and localto improve
fnancing, prioritization, and planning. Te Philippines has made
considerable progress in implementing the reforms, but important
elements are still missing.
To assess gaps and accelerate implementation of the climate
agenda, the Department of Budget and Management and the
Climate Change Commission sought advisory services from
the World Bank to carry out a Climate Public Expenditure
and Institutional Review (CPEIR). Te review is being carried
out at the mid-term of the current administration, which coin-
cides with the mid-term of the frst six-year phase of the National
Climate Change Action Plan (NCCAP) as well as the Philippine
Development Plan. It has occurred early enough to provide
recommendations for fnalizing the frst phase of the NCCAP,
and creates a frm baseline of results for the second phase of the
NCCAP. It ofers specifc recommendations to make the reforms
more efective; to facilitate and develop a coherent, transparent,
and efective system for mobilizing and utilizing climate fnanc-
ing; and to better align policies, institutions, and public spending
with the countrys climate change agenda. Te CPEIR builds on
methods used in traditional and environmental public expendi-
ture reviews to identify:
i. Innovations in policy, institutions, and fnancing
of climate action;
ii. Achievements, limitations, and disconnects in the current
approaches to addressing climate issues; and
iii. Policy and process reforms to more efectively deliver
desired climate results and enhance quality of the
decision-making process.
Te CPEIR, carried out from February 2012 to March 2013,
is a qualitative and quantitative examination of factors that
determine the ability of public institutions, policies, process-
es, and fnancing to translate the climate agenda into desired
results. Te CPEIR uses a policy-based approach to identifying
climate expenditures, focusing on budget and institutional prac-
tices of fve government Departments and their attached Agencies
as well as two local government units. It is used to identify ways
to increase the efciency and efectiveness of implementation, and
helps guide longer-term Government-led stakeholder dialogues
on climate change. It ofers a rich set of fndings and analysis to
inform the climate change dialogue in the Philippines, and should
be useful for carrying out similar exercises in other countries.
21
Tis publication is an Executive Report of the CPEIR,
excerpted from the CPEIR Extended Technical Report,
which consists of six parts:
i. Part I: Analyzing the physical science and underlying
socioeconomic basis of the challenges and opportunities
posed by climate change to the Philippines.
ii. Part II: Reviewing the national, sectoral, and local policy
environment relevant to the climate agenda, and the insti-
tutions that support these policies, for efective and efcient
implementation of the policy and fnancial agenda.
iii. Part III: Providing a snapshot of the countrys public
expenditure on climate change, including the strategic
allocation of resources to the countrys climate agenda and
priorities at the national, Departmental, and local levels.
iv. Part IV: Providing a set of recommendations for the
development of an action plan.
v. Part V: Annexes providing a summary of the key fndings;
the methodology; the framework of the three-year work plan.
vi. Part VI: A collection of data used, and a list of programs,
activities, and projects as a separate addendum.
Te Extended Technical Report is available online at
www.worldbank.org/reference.
Tis Executive Report provides a detailed overview of the
key elements from the Extended Technical Report. It ofers
decision makers (as well as stakeholders not directly involved in
the review) with a summary of the key analytical fndings, lessons
learned, and recommendations. It begins with a synopsis of the
overall report, followed by background on the climate science and
its development impacts, and a review of the current policy and
institutional system to address climate change in the Philippines.
It then ofers an analytical assessment of the main fndings and
major barriers in the policy and institutional systems, identi-
fying areas where action is needed to ensure full and efective
implementation of the climate agenda. Tis assessment includes a
public expenditure review of climate fnancing in the Philippines,
and an assessment of the public fnance management. Te key
recommendations, which correspond to a strategic action plan,
are summarized in Annex A of this report. Tis plan is established
to guide the Government in the development of a work plan for
the next three years. Finally, the framework of analysis used in the
CPEIR is summarized in Annex B.
22
Global climate change
is taking its toll on the
Philippines
Climate scientists concur that global climate change is
happening and will gain strength in the coming decades,
requiring immediate action to prevent further warming and
to adapt to the impacts of a changing climate (Figure 1). For
most of the past 650,000 years, carbon dioxide in the atmosphere
has remained at or below 300 parts per million, yet current levels
are above 400 parts per million. Primarily as a result of rising
concentrations of greenhouse gases in the atmosphere, the global
mean temperature has increased by 0.8C above pre-industrial
levels. Most warming has occurred since 1970, with the rate of
warming in the past decade being nearly double that of the past
century. All 12 years to date in the 21st century (20012012)
II. SIGNIFICANCE of the Review
23
rank among the 14 warmest
in the past 133 years.
Temperature increases of
1.82.2C are virtually cer-
tain both globally and local-
ly during the 21st century.
Even if Parties of the United
Nations Framework Con-
vention on Climate Change
(UNFCCC) comply with
the emission pledges made at the Conference of the Parties in
Cancun and Copenhagen, warming is set on a trajectory that may
likely exceed 3C, with a possible 4C increase as early as 2060,
causing a non-linear path of unforeseen climate events afecting
global, regional, and national economies (World Bank 2012a).
Gradual changes in global temperature patterns have already
led to and will continue to result in severe impacts worldwide.
Since 1950, oceans have warmed by 0.09C. While this may seem
like a minor change, it takes very little to cause severe disturbances
in ecosystems. Warming oceans, along with ocean acidifcation,
already impact coral reefs worldwide, which serve as important
feeding and spawning grounds for many fsh species that support
the livelihoods of fsher folk. Extreme climate-related events
have increased worldwide, with a greater frequency of prolonged
droughts, intense rains and fooding, and intensifying and more
deadly storms. In the coming years, all nations will be afected
by climate change, which already causes detrimental impacts to
global, regional, and local economies (World Bank 2013). Te bur-
den on developing countries is expected to be the greatest, as they
contain large poor populations, often living in densely populated
areas, whose livelihoods are at severe risk.
As the third most vulnerable country in the world to weath-
er-related extreme events, earthquakes, and sea level rise
3

(Alliance Development Works 2012), the Philippines is already
feeling the consequences of climate change (World Bank 2013).
Absent of land barriers, the Philippines is exposed directly to
multiple climate-related hazards such as typhoons (in the northern
and eastern parts), foods (in central Luzon and southern Min-
3
Tis ranking is based on the 2012 WorldRiskIndex, which was developed by the United
Nations Institute for Environment (UNU-EHS) in cooperation with the Alliance Devel-
opment Works. Te WorldRiskIndex assesses a countrys disaster risk by combining four
components: exposure to natural hazards (i.e., earthquakes, storms, foods, droughts and
sea level rise), susceptibility, coping capacity, and adaptive capacity.
danao), landslides (based on terrain), and droughts, making the
Philippines more vulnerable to climate risks than other Southeast
Asian countries (Figure 2). Sixteen provinces in the Philippines are
among the 50 most vulnerable regions in Southeast Asia (Yusuf &
Francisco 2010).
4
Te southern Philippine islands are projected to
see the strongest increase in frequency and intensity of extremes,
with all summer months experiencing unprecedented heat extremes
(World Bank 2013). By the end of this century, tropical cyclones
are expected to intensify, with a projected increase in the average
instantaneous maximum wind velocity at the Philippine coast.
4
Yusuf & Francisco (2010) derive their vulnerability index for each sub-national area by
factoring in its exposure to bioclimate-related hazards, human and ecological sensitivity
to exposure (through population density and biodiversity information as proxies, respec-
tively), and adaptive capacity.
Climate change is
already underway
and further warming
is virtually certain
even if emissions
are reduced.
The Philippines is increasingly exposed to
climatic hazards of climate change, from
gradual changes such as sea level rise, coral
bleaching, and salinity intrusion to extreme
events such as typhoons, foods, and droughts.
.5 NASA Goddard Institute for Space Studies
.25
0
-0.25
-0.50
-0.75
A
v
e
r
a
g
e

T
e
m
p
e
r
a
t
u
r
e

A
n
o
m
o
l
y

(

C
)
1880 1900 1920 1940 1960 1980 2000
Met Ofce Hadley Centre/Climatic Research Unit
NOAA National Climatic Data Center
Japanese Meteorological Agency
Figure 1. Scientifc Agreement on Temperature Changes
Source: NASA Earth Observatory
A. Southeast Asia (above), B. Philippines (below)
Figure 2. Climate Change Vulnerability Map
Source : Yusuf & Francisco 2010
24
Sea-level rise within this century will afect a larger percentage
of the Philippine coastline compared with that of other de-
veloping countries in the region. By the end of this century, sea
levels in the region are expected to rise by about 125 centimeters,
exceeding the global average by 1015 percent (World Bank 2013).
Even assuming the sea level in the region rises at the global average
rate of about 100 cm, about 14 percent of the Philippines total
population and 42 percent of its total coastal population will be
afected by intensifying storm surges resulting from more intense
typhoons (Brecht et al. 2012). In the Philippines, the impacts of
storm surges associated with sea level rise and more intense storms
are particularly signifcant in terms of the percentage of afected
coastal land area, population, and gross domestic product (GDP)
(Dasgupta et al. 2009). From 1990 to 2006, the country experi-
enced record weather-related disasters, including the strongest ty-
phoon, the most destructive typhoons, the deadliest storm, and the
typhoon with the highest 24-hour rainfall on record (NDRRMC).
Tese events are projected to continue to intensify, requiring
the Philippines to improve its climate resilience and develop its
adaptive capacity to alleviate the risk of catastrophic economic and
humanitarian impacts.
Te urban poor in informal settlements are one of the most
vulnerable groups to climate-related impacts, due in part to
the additional pressures on urban systems and livelihoods cre-
ated by rapidly increasing population growth. Four Philippine
cities (San Jose, Manila, Roxas, and Cotaboato) are among the
top 10 most vulnerable cities in the East Asia and Pacifc region to
sea level rise and intensifed storm surges (Dasgupta et al. 2009).
Te urban population is growing faster in the Philippines than in
similar Southeast Asian countries such as Indonesia, Tailand, and
Vietnam. Te urban poor in informal settlements account for 45
percent of the total Philippines urban population, and are partic-
ularly vulnerable to foods associated with intensifed storm surges
and sea-level rise due to less secure infrastructure, reduced access
to clean water, and lack of health insurance. (World Bank 2013).
Climate change will have signifcant impacts on communi-
ties dependent on subsistence livelihoods. Farmers and fsher
folk, who are among the poorest population categories in the
Philippines with poverty incidences of 45 percent and 50 percent,
respectively, will be afected most severely because of their high
dependence on resources that rely on a stable climate. Tey are
less equipped to adapt to climate-related disasters and weather
variations (Peralta 2008; NAST; NEDA 2011). Increases in local
temperatures, extreme weather events, droughts, and foods will
lead to reduced crop yields (Schlenker and Lobell 2010; Schlenker
and Roberts 2009). With limited access to sustainable, alternative
livelihoods and economic means, the capacity of poor people to
adapt to climate variability and extremes is low (Butardo-Toribio
2011). Food insecurity and loss of livelihood are likely to be fur-
ther exacerbated by the loss of cultivated land and nursery areas
for fsheries due to inundation and coastal erosion in low-lying
areas (Cruz et al. 2007).
Climate-related impacts will reduce cultivatable land, which
will decrease agricultural productivity and increase food
insecurity. Because of unpredictable climate patterns (e.g., high
temperature and periodic rains and drizzles) and extreme weather
events, the countrys agricultural productivity is projected to con-
tinue to decline (CCC 2011; DENR 2009; PAGASA 2011). Te
annual damage to agriculture from typhoons, droughts, and foods
has already reached Php 12
billion, constituting 3 percent
of total agricultural production
(CCC 2011). Global warming
is likely to further reduce rice
yield by up to 75 percent in the
Philippines by 2100 compared
with 1990 (Asian Development
Bank [ADB] 2009). According
to Balisacan, Skoufas, and
Piza (2012), negative rainfall
shocks, defned as less-than-
usual precipitation, reduce
rural household consumption.
Te impact of the negative shocks varies according to regions,
and the most afected regions include Ilocos and Western Visayas
Islands. In these regions, a negative shock decreases household
consumption by 9 percent. Households with less access to the
highway and the market sufer greater impact of negative rainfall
shocks than those with more access.
Fisheries in particular will sufer as a result of loss or degra-
dation of ecosystem services, which are projected to accelerate
as a consequence of growing species extinctions, declining
species abundance, or widespread shifts in species and biome
distributions (World Bank 2012a). Te degradation of coral
reefs from ocean acidifcation will accelerate as the atmospher-
ic concentration of carbon dioxide increases, afecting coastal
protection, fsheries, and tourism (Hoegh-Guldberg et al. 2007).
Te live coral cover of the Philippines decreased by half after the
1998 to 1999 ENSO-inducing coral bleaching, and fsheries yield
diminished by more than Php 7 billion (Center for Environmen-
tal Concerns Philippines 2011; Santos, Dickson, and Velasco
2011). In a 4C warmer world, the projected changes in maximum
catch potential range from a 50 percent decrease around the
southern Philippines to a 616 percent increase around the north-
ern Philippines. Such shifts in catch potential are likely to place
additional challenges on coastal livelihoods in afected regions
(World Bank 2013).
Non-climate factors, such as fast-growing environmental
deterioration and unsustainable development practices, ag-
gravate climate vulnerability in the Philippines. For example,
widespread mining and deforestation in Mindanao were blamed
for recent fash foods, including those produced by Tropical Storm
Sendong in 2011, which cost the lives of about 1,000 people (Iqbal
2011). Te neglect of drainage systems and the lack of long-term
Climate change
will have signifcant
impacts on the
economy, and
in particular the
livelihoods of the
poor in high-risk
urban and coastal
areas.
25
planning and enforcement
exacerbated the foods in 2012,
which swamped nearly all of
Manila (Macaraig 2012). Mean-
while, water scarcity, already felt
in many areas of the country at
certain seasons, is aggravated by
the deterioration of water quality
due to pollution from untreated
domestic sewage, industrial
wastewater, agricultural runofs,
and urban runofs (CCC 2011).
Greenhouse gas
emissions in the Philippines
are increasing rapidly
Te Philippines has been a minor contributor to global warm-
ing, though among low- to medium-income countries its an-
nual greenhouse gas emissions rank in the top 25 percent. Te
country ranks 43rd in terms of global greenhouse gas emissions,
and 112th in terms of emissions intensity, accounting for only 0.3
percent of global emissions. Among the 128 low- and middle-in-
come countries that are the members of the World Bank, the Phil-
ippines greenhouse gas emissions and emissions intensity are 24th
(in top 25%) and 71st (in top 75%), respectively. Te countrys
total greenhouse gas emissions, excluding land use change and
forestry, have hovered around 80 million metric tons of CO2
equivalent (MtCO2e) since the late 1990s.
Greenhouse gas emissions in the Philippines are very
likely to increase signifcantly due to its growing economy,
urbanization, and motorization. Te countrys principal emis-
sion sources are the energy and transport sectors, accounting for
36 percent and 32 percent of total greenhouse gas emissions in
2005, respectively (Transport and Trafc Planners Inc. 2010). By
2030, under a business as usual scenario, the emissions from the
energy sector are estimated to quadruple. Under this scenario, the
dependence on coal for power generation and the carbon intensity
of electricity production would increase; similarly, the transport
sector is expected to double its emissions, exacerbating current
severe trafc congestion. Te underlying data for these assumptions
must be updated through the next National Communication to the
UNFCCC and through the ongoing low-carbon studies.
Climate action contributes
to inclusive growth and
poverty reduction
Implementing climate change activities is good
development policy, as both adaptation and mitigation mea-
sures also support sustainable development goals and provide
opportunities for increasing employment. Climate change activ-
ities yield benefts even in the absence of climate change through a
host of co-development benefts. For example, many climate change
activities also reduce poverty and help generate jobs, particularly in
vulnerable urban and coastal areas. Adaptation measures will make
the Philippine society more resilient to climate impacts by helping
to achieve development objectives set by the Philippine Devel-
opment Plan (PDP) and/or the Millennium Development Goals
(MDGs). Similarly, mitigation activities, which often call for the
use of new clean technologies, will drive innovation and promote
economic growth. Te implementation of these actions constitutes
a very efcient frst step in a long-term climate change strategy.
Climate action can also ofer employment growth benefts across
the agriculture, energy, and construction sectors.
Adaptation measures help build assets and strengthen the
resilience of communities, especially in poor areas. Hard adap-
tation measures, such as the use of technologies that involve large
capital expenditures, can include the enhancement of food con-
trol and storm protection through the construction or strength-
ening of dikes and embankments, which lowers risks from foods
Climate change
impacts are
aggravated by
rapid environmental
deterioration and
unsustainable
development
practices.
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Figure 3. Greenhouse Gas Emissions in the Philippines
(a) Greenhouse gas emissions and emissions intensity per GDP
(excluding land use changes and forestry). Source: World
Resources Institute 2012.
(b) Projected greenhouse gas emissions from energy and transport
sectors. Source: Transport and Trafc Planners Inc. 2010.
26
and storm surges (World Bank 2012b). Soft adaptation measures
typically include knowledge development, capacity building, and
policy and strategy formulation, which help reduce vulnerabilities
and improve resilience to the efects of climate change. In the
Philippines, such measures can include the establishment or im-
provement of food-warning systems (ADB 2009). In urban areas,
using vulnerability mapping, land-use planning, and zoning plans
to restrict future development in hazardous locations and to retire
key infrastructure and vulnerable buildings would reduce the
costs of damage (World Bank 2010). In the agricultural sector,
soft adaptation measures are commonly used and include adjust-
ment in cropping calendars and patterns, changes in management
and farming techniques, use of heat-resistant varieties, diversifed
farming, intercropping, and crop rotation (ADB 2009).
Low-carbon measures that increase renewable energy gen-
eration and improve energy efciency also decrease local
pollution. Energy efciency programs, many of which have neg-
ative abatement costs, would contribute greatly toward reducing
fossil energy use, and therefore
greenhouse gas emissions
from buildings, industry, and
municipal services. Wind and
hydropower are particularly
promising options for reducing
greenhouse gas emissions in
the Philippines, as they ofer
lowest abatement costs, sig-
nifcantly reduce dependence
on imported oil for energy
supply, and improve energy
self-sufciency. In addition,
implementation of energy efciency and renewable energy would
improve the competiveness and proftability of the Philippine
industry by lowering energy costs, which are currently the second
highest in the region after Singapore and the ninth highest out of
44 international markets (Visconti 2012).
Climate action, especially in the felds of agriculture, infra-
structure, and energy, can create employment opportunities.
Tis will help satisfy the Governments priority to create oppor-
tunities for inclusive growth to increase the quality and quantity
of jobs, coupled with addressing climate change and disaster risk.
Institutional changes that redirect climate resilience fnancing and
its prioritization at the local level toward the most vulnerable ar-
eas and people could generate programs that are more participato-
ry and labor-intensive in nature, thereby facilitating job creation.
Small-scale sustainable and climate resilient farming
and forest management have great potential to create jobs
globally (UNEP 2008). While there is a lack of publicly
available ofcial statistics regarding the number of jobs to
be created in the Philippines, a shift from traditional chem-
ical-based farming to organic agriculture is likely to have a
positive impact on the countrys employment because of its
labor-intensive nature (Strietska-Ilina et al. 2011).
Enhancing food control and storm protection, including
retroftting infrastructure and buildings would provide
signifcant job opportunities. Large-scale investments in
multi-hazard retroftting and reconstruction enhance the
capacity of the engineering and construction industries and
create local jobs (Strietska-Ilina et al. 2011).
Scaling up of the renewable energy market and expand-
ing energy efciency programs, including retroftting
buildings would create new jobs. Clean technology
development is still an expanding market, with plenty of
opportunities for training engineers, building managers,
and a host of other alternative livelihoods to those that may
be lost because of climate change.
By acting now to develop its adaptive capacity and employ
a sustainable green growth strategy expanding on mitiga-
tion opportunities, the Philippines will avoid substantial
economic and humanitarian costs that could arise from the
impacts of climate change.
Te country has already
shown its capability to beneft
from adaptation. In Guagua,
Philippines, adaptation activ-
ities implemented since 1991
have reduced fooding by 77
percent, thereby increasing
resilience. Tis has reduced the
damages to household and in-
frastructure in both the public
and the private sector (Pulhin,
Tapia, & Perez, 2010). Green-
house gas mitigation activities
bring additional benefts, such as reductions in local air pollutant
emissions that contribute to negative health efects, particularly
in poorer communities. Te global community is taking action
to implement adaptation and mitigation activities to ensure
sustained economic growth in a climate-resilient and low-carbon
society. Te Philippines could take advantage of similar opportu-
nities, which would improve its competitive advantage. Countries
that build resilience in their industries and economy by focusing
on R&D and the development of new technologies will be at the
forefront of innovation, helping to drive sustained growth and the
expansion of the economy.
Measures to
reduce greenhouse
gas emissions also
improve air quality
and public health,
increase energy
security, and reduce
energy costs.
The development
benefts from
implementing the
climate agenda
and the potential
costs of failing to
do somake it
imperative to
act now.
27
The Philippines climate
reform agenda aims to
consolidate climate
policy across all levels
of Government
Recognizing the urgency of addressing its vulnerability to
climate change, the Philippines embarked on a reform agenda
consisting of a comprehensive set of policy changes aimed at
strengthening, integrating, and institutionalizing government
initiatives to address climate change in the context of growth
and sustainable development. Te Philippines has gradually
expanded the scope of its cli-
mate-related policies. Between
1997 and 2008, a series of
stand-alone laws designed to
address climate change in dif-
ferent segments of the economy
was enacted (Figure 4). In
2009, the Climate Change Act
was passed to strengthen, inte-
grate, consolidate, and institu-
tionalize government initiatives
addressing climate change, and to coordinate their implementa-
tion. It calls for the systematic integration of climate change in
various phases of policy formulation, development plans, poverty
reduction strategies, and other development tools used by all
agencies and departments. Te Climate Change Act declares
as state policy the systematic integration of climate change in
various phases of policy formulation, development plans, poverty
reduction strategies, and other development tools and techniques
by all agencies and instrumentalities of the government.
Te National Framework Strategy on Climate Change
(NFSCC), developed on a foundation of available scientifc
evidence, was formulated with clearly defned overall objectives
and the broad parameters for developing a climate action plan.
Te framework was developed in relation to the countrys socioeco-
nomic conditions, envisioning a climate risk-resilient Philippines
with healthy, safe, prosperous, and self-reliant communities and
thriving ecosystems. It includes two pillarsadaptation and mitiga-
tionwith an emphasis on adaptation as the anchor strategy. Disas-
ter risk reduction management (DRRM) is explicitly recognized as
one of goals under the adaptation pillar. Te NFSCC is expected to
guide the national and subnational development planning processes.
It recognizes capacity development, knowledge management; in-
formation, education, and communication (IEC) advocacy; gender
mainstreaming; research and development; and technology transfer
as important issues that cut across pillars. Te NFSCC was crafted
in close collaboration with Government agencies, nongovernmental
organizations (NGOs), and academia. Te means of implementing
the NFSCC include multi-stakeholder partnerships, fnancing,
valuation, and policy planning and mainstreaming.
Te National Climate Change Action Plan (NCCAP) strategi-
cally established the Philippines frst long-term climate agen-
da from 20112028, divided into three six-year phases, cor-
responding to the terms of the Philippine Development Plan
(PDP) and the Philippines electoral and planning cycles. Te
frst phase of the agenda is focused on building an enabling en-
vironment, while the subsequent phases will focus on scaling up
climate action. Te NCAAP is formulated around seven thematic
priorities aimed at two ultimate outcomes: (1) enhance adaptive
capacity of communities, resilience of natural ecosystems, and
sustainability of built environment to climate change; and (2)
achieve a successful transition to climate-smart development (see
Figure 5). Te seven thematic priority areas include: Food Security,
Water Sufciency, Ecological and Environmental Stability, Human
Security, Climate-Smart Industries and Services, Sustainable Energy,
and Knowledge and Capacity Development. Te NCCAP provides
a detailed results matrix that includes 92 activities (supported by
328 sub-activities) in 41 output areas aimed at achieving 19 im-
The Philippines is
one of 23 developing
countries that have
enacted climate-
specifc laws (Globe
International 2013).
FRAGMENTED SECTORAL APPROACH
Agriculture and Fisheries Modernization Act (1997)
Philippine Clean Air Act (1999)
Ecological Solid Waste Management (2000)
Philippine Clean Water Act (2004)
Biofuel Act (2006)
Renewable Energy Act (2008)
COORDINATED NATIONAL INTEGRATION
Climate Change Act (2009)
National Framework Strategy on Climate Change
(2010)
Disaster Risk Reduction and Management Act (2010)
National Climate Change Action Plan (2011)
National Disaster Risk Reduction and
Management Plan (2011)
Peoples Survival Fund (2012)
Figure 4. From Fragmented to Comprehensive Laws and Policies
28
mediate outcomes, albeit without specifc targets for most areas.
Te agenda is highly ambitious, with over 90 percent of activities
expected to begin during the frst phase, of which three-ffths
are to be completed. Te NCCAP activities also include many
sectoral policy reforms, indicating the desire to be transformative
and the importance of acting at the sectoral level under a coordi-
nated national approach.
Te climate change policy agenda under the Climate Change
Act and NCCAP provides a strong focus on, and shift to,
adaptation, representing a clear evolution of priorities from
mitigation to adaptation. Prior to the passage of the Climate
Change Act, climate activities in the Philippines Development
Plans focused explicitly on mitigation (e.g., in the Philippine
Development Plan 20042010), even though they contained some
adaptation actions; now six out of the seven NCCAP priority areas
are related directly to adaptation, indicating a clear shift in concern.
Te NCCAP envisions that public fnancing prioritize adaptation
to reduce vulnerability and risks for communities, while creating an
enabling environment encouraging private sector participation to
optimize mitigation opportunities for sustainable development.
Te Peoples Survival Fund (PSF) Act was established to pro-
vide dedicated fnancing for adaptation at the local levels. Te
Act establishes the Peoples Survival Fund, an annual one-billion
peso replenishable fund to fnance PAPs based on the NFSCC.
Te Final Implementing Rules and Regulations reconfrm the
scope of activities that are to be funded by the Act, which is
narrowerwith support only for adaptation activities of the local
government units (LGUs) and communitiesthan the NFSCC
or the NCCAP.
5

5 Te PSF Act provides an illustrative list of activities that would be supported, which in-
cludes the following: (a) adaptation activities in the areas of water resources management,
land management, agriculture and fsheries, health, infrastructure development, natural
ecosystems including mountainous and coastal ecosystems; (b) improvement of the
monitoring of vector-borne diseases triggered by climate change, and in this context im-
proving disease control and prevention; (c) forecasting and early warning systems as part
of preparedness for climate-related hazards; (d) institutional development, for the LGUs,
in partnership with local communities and NGOs, for preventive measures, planning,
preparedness and management of impacts relating to climate change, including contin-
gency planning, in particular, for droughts and foods in areas prone to extreme climate
events; and (e) strengthening or establishing regional centres and information networks to
support CCA initiatives and projects. Interestingly, the fund may also serve as a guarantee
for risk insurance needs for farmers, agricultural workers, and other stakeholders.
Policies on climate change adaptation have converged at
the policy level with those on disaster risk reduction and
management, in that both consider climate adaptation as
an appropriate mechanism for addressing climate-related
disaster risk. Adaptation actions aimed at increasing the resil-
ience of people and their assets to climate change also make them
less vulnerable to current weather-related disasters. Similarly,
climate disaster risk reduction eforts need to increase the
resilience of people to future medium- and longer-term changes
in climate (Figure 6). Tese linkages are recognized in the
conceptual convergence of the Climate Change Act and the
National Disaster Risk Reduction Management (NDRRM) Acts.
Climate related disaster prevention is one of the priorities under
the NCCAP. Similarly, the NDRRMA represents a paradig-
matic shift in the way disaster risks are managed away from
disaster response and toward prevention, with climate adaptation
considered an appropriate mechanism for disaster prevention.
Accordingly, the CCA and the NDRRMA require the CCC and
the NDRRMC to jointly undertake certain activities (e.g., com-
munity-based and scientifc DRRM/CCA assessment, mapping,
analysis, and monitoring) at the local level.
Figure 5. NCCAP Priority Areas and Outcomes 2011-2028
Source: Climate Change Commission
Figure 6. Linkages between Climate Adaptation Actions and DRRM
Prevention
Adaptive Capacity
Preparedness
CLIMATE
RELATED DRRM
CLIMATE CHANGE
ADAPTATION
Response &
Rehabilitation
29
Centralized institutional
coordination supports
the reform agenda
Te Philippines has reformed its institutional structure by es-
tablishing centralized national institutions aimed at stronger
coherence and horizontal and vertical coordination of a joint
climate change agenda, flling a critical gap in support of
efective and efcient climate
policy and fnancing. Several
new institutions have been
created or are at various stages
of mobilization, including the
Climate Change Commission
(CCC), the Cabinet Cluster
on Climate Change (CCCC),
and the PSF Board (PSFB).
Te CCC is at the center of the
new arrangement, coordinating
across the oversight agencies
and with the implementing agencies on all aspects of climate poli-
cies. Existing Departments/Agencies and the LGUs were assigned
with the responsibility of planning and implementing climate
action. As such, coordination between the new institutions and
existing Departments and the LGUs is an important determinant
of implementation progress. Te key institutions and linkages
in the new structure are shown in Figure 7, illustrated separately
from a policy and a fnance perspective (left and right sides of the
fgure, respectively). Within each perspective, the policy making/
oversight function is shown in the top half and the implementa-
tion/execution function is in the bottom half.
Te CCC was established as the lead policymaking body
tasked to coordinate, monitor, and evaluate the government
programs and action plans related to climate change, and to
ensure the mainstreaming of climate change into national,
sector, and local development plans and programs. Te CCC
serves as secretariat to the Cabinet Cluster on Climate Change
(CCCC), which was created to strengthen delivery of results
in Key Result Area 5 (KRA-5), one of the fve key result areas
identifed in the Presidents Social Contract corresponding to
the integrity of the environment and climate change adaptation
and mitigation. Te CCCC meets monthly to consider agenda
items introduced by its members, which have been dictated by
the concerns raised by individual Departments rather than by any
long-term program. In its capacity as secretariat of the CCCC, the
CCC coordinates the policy discourse within the cabinet cluster.
On the fnance side, the Peoples Survival Fund (PSF) Board
is designed to guide coordination and mobilization of
resources. Te PSF Board was created with responsibilities to
promulgate policies, provide strategic guidance to the CCC on
the management and use of the PSF, and to provide fnal approval
for projects to be funded. Te CCC is to constitute an interim
secretariat in the climate change ofce of the CCC to support
the PSF Board, providing the CCC a strong role in developing
Figure 7. Institutional Structure on Climate Change
Centralized coor-
dination in climate
change policy making
flls a critical gap
while coordination
on climate fnancing
has begun.
Sector
Departments and
Attached Agencies
Local
Government
Units
Communities
CCC PSFB DOF DBM
CLIMATE FINANCE
Sector
Departments and
Attached Agencies
Local Government
Units
CCCC
CCC NDRRMC NEDA
CLIMATE POLICY
Oversight
Implementation
CCC: Climate Change Commission
CCCC: Cabinet Cluster on Climate Change
NEDA: National Economic & Development Authority
NDRRMC: National Disaster Rist Reduction and
Management Council
DBM: Department of Budget & Management
DOF: Department of Finance
PSFB: Peoples Survival Fund Board
30
the operations manual for the PSF Board. Te CCC supports the
Department of Budget and Management (DBM) in its eforts to
improve utilization and efectiveness of climate resources at the
national level, and assists LGUs in their eforts to better integrate
climate objectives into their programs.
Te Climate Finance Group (CFG) remains an ad-hoc group
to support climate fnancing needs. Te CFG was conceived
during a discussion between the DOF, the DBM, the National
Economic Development Authority (NEDA), and the CCC for
mobilizing fnancial resources to respond to technical and human
capacity needs for sustaining eforts to reduce and/or mitigate the
impacts of climate variability and change. Te legal basis for its
creation was not pursued, and CFG remains an ad-hoc group.
At the local level, LGUs are the frontline Agencies in formu-
lating, planning, and implementing climate action. Te Phil-
ippine Congress passed the Local Government Code (LGC), a
key decentralization measure, in 1991, transferring responsibility
for delivering many of the basic services and resources to LGUs in
the form of an Internal Revenue Allotment. LGUs are responsible
for many of the basic services afected by climate change. Mu-
nicipalities are generally responsible for the delivery of frontline
basic services such as primary health care, construction, and
maintenance of public elementary schools. Te LGC mandates
that LGUs develop Comprehensive Development Plans (CDPs)
and Comprehensive Land Use Plans (CLUPs), which correspond
to the PDP and the NFPP at the national level.
When the CLUP is enacted
into a zoning ordinance, it
becomes a statutory plan.
As such, it is a powerful
instrument that the LGUs
use to align land allocations
between competing and often
conficting uses, including
climate adaptation.Te Climate
Change Act requires LGUs to
develop Local Climate Change Action Plans, which can be inte-
grated into the CLUP, CDP, Local Disaster Reduction Manage-
ment Plan, Annual Investment Plan, Annual Operation Plan, and
Physical Framework Plan. Te national government is required to
provide technical and fnancial assistance to LGUs in formulating
and implementing their local action plans.
6
Te NEDA and the
Department of the Interior and Local Government (DILG) have
been providing direct assistance to LGUs in this regard, with the
DILG spearheading eforts to streamline planning processes in
the LGUs planning processes, and to integrate climate change
into the CDPs and the CLUPs (in lieu of developing a stand-alone
climate/disaster plan). Te implementing rules and regulations
create an LGU coordination unit within the Climate Change
Ofce of the CCC, and encourage LGUs to create their climate
change focal units.
6
It shall be the responsibility of the national government to extend technical and fnancial
assistance to LGUs for the accomplishment of their Local Climate Change Action Plans.
(Climate Change Act 2009, Section 14).
The Climate Change
Act requires the
national government
to provide technical
and fnancial assis-
tance to the LGUs.
31
III. KEY ANALYTICAL FINDINGS:
Overcoming Barriers That Impede Sustained Change
The frst phase of the climate
reform agenda must be
fnalized in order to reach
sustained low-carbon and
climate-resilient development
Te Philippines new comprehensive climate agenda builds a
foundation for consistent reforms at all levels of government,
but it has much to lose if it fails to deliver on the climate
reforms that have begun. Te current administration, with a six-
year term, rightly aims to fnalize frst-phase reforms focused on es-
tablishing readiness and to commence execution of the full agenda
and operationalizing it at the sector and local levels to prepare for
the second phase. However, though the country is moving in the
right direction to ensure solid integration of climate change into
32
development plans, there are
several pieces missing, which
need to be addressed to ensure
successful implementation and
execution. If it fails
to address these issues, the
Philippines may experience
challenges in achieving its
overall development goals.
With the already high level of vulnerability in the
Philippines, it is critical that the country adequately imple-
ments measures needed to protect against ever-increasing cli-
mate change and variability. Trough the PDP, the Philippines
aims to accelerate annual economic growth to 78 percent toward
meeting its MDG goal of halving the poverty rate by 2015 and
creating one million new jobs
annually through large investments in infrastructure in roads,
water, and energy, as well as in productive sectors (agriculture).
Te Philippines has a lot to lose by not acting expeditiously to
address climate change. While it is evident from recent typhoons
such as Ondoy, a single climate-related event can result in dam-
ages amounting to 23 percent of GDP, wiping out much of the
economic gains with signifcant impacts on the poor, addressing
slow-onset events is just as important. Land use plans can be set
to provide proper incentives to locate people and assets away from
high-risk areas at low cost, but will be costly to protect or relocate
in the future under harsher climate conditions. Te processes of
building capacity and institutions to enact and implement reforms
are inherently slow, and failure to act now can lead to urbaniza-
tion processes that are much more vulnerable to climate risks.
Implementing the Governments climate reform program
contributes to the broad development goals through several
channels. For example, the reform supports the development of a
workforce that understands and is able to quickly respond to cli-
mate events, whether those events are slow-onset or fast-moving.
Further, the reforms support
improved targeting of resources toward the poor and the most
vulnerable through reliance on evidence-based decision-making.
Te climate change agenda and these reforms should go hand in
hand to ensure that the development agenda considers the present
and future impacts of climate change, and vice versa.
Climate policy reform eforts
are only partially aligned
with development plan
outcomes, thereby limiting
efectiveness
Te national, Departmental, and local development plans
and policies are only partially aligned with the NCCAP. Te
NCCAP priorities are thematic in nature, often cutting across
the sector-based focus of the
PDP,
7
Key Result Area 5
(KRA-5), the Department
Work Programs, and local
development plans. As such,
outputs, outcomes, and goals
are not always similar, and
what constitutes a climate
change activity under one
plan/policy may not be
considered a climate change
activity under another. Such
diferences lead to difcul-
ties in monitoring climate
activities; they also hamper
coordination and convergence
across Departments and
between levels of government.
To ensure consistency and
good structured coordination, the NCCAP should be aligned
with plans and policies at the national (PDP, KRA-5, and the
PIP), sector (Departments), and local (CLUPs and CDPs) levels.
At the national level, the NCCAP and the PDP are only par-
tially aligned with each other in terms of climate-related out-
comes and outputs. Even though the PDP was launched as the
NCCAP was still being developed, fve chapters in the PDP in-
clude extensive discussions on climate change, particularly in re-
lation to adaptation and disaster risk reduction and management,
which are discussed in the agriculture and fsheries chapter, and
the chapters in industry and services, infrastructure, and social
development as well as the environment and natural resources.
Mitigation is discussed only in the context of the chapter on eco-
system degradation and deforestation. Some immediate NCCAP
outcomes are excluded from the PDP (e.g., climate risk responsive
health delivery systems), while others lack detailed articulation of
supporting activities. For instance, the immediate NCCAP out-
comes on sustainable water supply and knowledge and capacity
7
Te PDP aims to (1) attain sustained economic growth that provides productive employ-
ment opportunities; (2) equalize access to development opportunities across diferent
geographic, income, and social spectra; and (3) formulate and implement efective and
responsive social safety nets.
New climate policies
build a foundation
for consistent
reforms at all levels
of government.
The lack of
alignment among
the thematic prior-
ities of the National
Climate Change
Action Plan and
development plans
at the sector and
local levels requires
improved coordina-
tion across sectors
in planning and
policy development.
33
building in the water sector are presented without any reference to
climate change, as is the case in other chapters. Since both plans
are scheduled to be updated in mid-2013, an opportunity exists
for improved alignment. Te NEDAs Efectiveness and Efciency
Review process provides an opportunity to fll many of these gaps,
as do the CCC climate screening guidelines, which help identify
a comprehensive set of PAPs based on the NCCAP.
Comparison of the NCCAP and KRA-5 outcomes indicates
that the two are only partially aligned. While outcomes and
outputs for the KRAs are not clearly defned in a policy doc-
ument, each of the PDP outcomes are mapped to one or more
KRAs in the PDP results matrix, providing a frst cut at defning
potential KRA-5 outcomes. Te PDP results matrix identifes
objectives, sectoral and intermediate outcomes, as well as indi-
cators, baseline values, and targets to monitor progress. While
the PDP results matrix is not mapped to NCCAP outcomes, a
simple comparison indicates that increasing sector resilience to
climate change in agriculture and fsheries and environment and
natural resources is an outcome common to both the NCCAP
and KRA-5, which is supported by intermediate outcomes,
outputs, and indicators. However, the alignment breaks down for
key infrastructure subsectors (energy, water, transport). While
improving climate resilience in infrastructure is a KRA-5 sectoral
outcome, it is not supported by underlying outcomes, outputs,
or measurable indicators related to climate resilience, which only
include those for quality, adequacy, and accessibility of service.
Instead, the sectoral outcome for infrastructure refers to subsector
outcomes on improving resilience to climate change, which are
yet to be defned.
Te NCCAP has not yet gained traction among the CCCC
Department members, due to lack of incentives to focus on
KRA-5 and limited guidance on the inclusion of NCCAP in
strategies and work programs. Te performance of Departments
is measured and monitored against their Major Final Outputs
using the Organizational Performance Indicator Framework
indicators, which have been mapped to the KRAs, but not to NC-
CAP. As such, Departments have incentives to align their climate
strategies and work programs with the KRA-5. Moreover, toward
supporting the KRA-5 outputs, the CCCC asked Departments
to identify their climate activities in their work programs for
the 20112016 period, and the DBM has asked Departments to
report on their activities supporting the diferent KRAs, includ-
ing those on KRA-5. While the CCCC request was a one-time
exercise carried out with limited guidance on the appropriate
criteria to be used, the DBM guidance for reporting for KRA-5
has varied over the years, and was not related to the NCCAP.
In contrast, the Departments have not been provided guidance
or incentives to align their strategies and work programs to the
NCCAP. In part, this refects the fnalization and dissemination
of the NCCAP only after the KRAs had been established.
Mainstreaming the NCCAP in the Departments plans and
work programs requires the adoption of a common approach
to tagging climate PAPs and the establishment of indicators
and targets. To address the frst shortcoming, the CCC and the
DBM have recently developed climate screening guidelines for
use in budget preparation beginning in FY 2014, based on the
NCCAP. Upon its operationalization, climate PAPs supporting
the NCCAP will be clearly be identifed in the budget across
the Government, providing the ability to monitor against the
NCCAP. However, this still does not provide Departments
with strong incentives to prioritize PAPs that support NCCAP.
Accountability of Departments can be ascertained only if the
NCCAP includes indicators and targets to measure implemen-
tation progress. While the NCCAP includes indicators for each
output, it does not provide specifc targets nor assign them to
specifc Departments. As a result, the size and scope of specifc
NCCAP programs in the Departments currently depend on each
Departments goals and MFOs. While in a few cases these may be
well aligned with NCCAP outcomes (e.g. DAs MFO on increas-
ing sector climate resilience with NCCAP outcome on food secu-
rity), most Departments do not have MFOs related to NCCAP
outcomes. Establishing targets for the NCCAP indicators and
aligning them with established Departmental goals and outputs
would incentivize Departments to fully mainstream NCCAP into
their strategies and work programs.
Despite the mandate for LGUs to develop and integrate Local
Climate Change Action Plans (LCCAPs) and Local Disaster
Risk Reduction and Management Plans (LDRRMPs) into the
CLUP and CDP, few have been developed. New requirements
to develop the LCCAPs and the LDRRMPs impose signifcant
administrative burdens and pressure on the LGUs, as they already
must produce many development plans that correspond to central
government plans. To lighten this load, the CCC encouraged
LGUs to incorporate their LDRRMP and LCCAPs into the
CDPs and CLUPs instead of preparing separate, stand-alone
LLCAPs and LDRRMPs. Both LGUs studied in the CPEIR, the
Province of Albay and Makati City, have proactively led on the
climate agenda, specifcally in mainstreaming climate change
policies and action in their respective areas, highlighting the
importance of plan integration (see Box 1); however, they do not
represent the norm across LGUs.
34
Execution and coordination
of climate actions are
hindered by a lack of clarity
in roles and responsibilities
across institutions
Leadership and accountability in implementation of the
climate agenda is hindered by the broad scope of roles and
responsibilities of the CCC as well as lack of efective coor-
dination among stakeholders, including: (1) between oversight
agencies, (2) between Departments, (3) within Departments, (4)
vertically from the CCC to the LGU level, and (5) between LGUs
at the local level.
Te CCCs key challenges in streamlining NCCAP imple-
mentation are to operationalize the many tasks for which it
has joint responsibilities and to set priorities among all of
its responsibilities (Figure 8). Te CCC is solely responsible
for a broad spectrum of responsibilities that include leading
climate policymaking, coordinating, monitoring, and evaluating
climate change programs. In
addition, the CCC is jointly
responsible for many other
tasks, including coordinat-
ing sector policy, implying a
need to consult and reach an
agreement with the Depart-
ments and Agencies before
the tasks can be carried out.
Failure to reach an agreement
and the lack of full account-
ability for these tasks risks
their completion. A lack of prioritization of the roles and joint
responsibilities of the CCC has hindered its ability to fulfll all of
its tasks.
Te CCC staf is dispersed across the spectrum of functions,
with only a few staf assigned exclusively to the strategic pol-
icy-making and coordination roles. As a result of its wide array
of responsibilities, the CCC has not been able to divert enough
resources to strongly advocate for immediate action on climate
change. Some of the CCCs focus has been on implementing
projects. Coordination is impeded across Departments and with
The Climate Change
Commission must set
priorities and stream-
line its coordination
role to be efective in
its primary responsibil-
ity as a policy-making
and coordinating body.
DOST (PAGASA)
Climate projections/
scenarios
LGU & LINE
AGENCIES
CC Service
delivery
INSTITUTIONAL RESPONSIBILITIES
KNOWLEDGE GENERATION & MANAGEMENT
CC risk/vulnerability assessment
(enabling environment, guidelines)
FORMULATE POLICIES & PROCESSES
NSFCC
NCCAP
Coordinate sectoral policy
ENSURE PROGRESS
Monitor and evaluate programs
and action plans
RAISE AWARENESS AND TAKING ACTION
Statutory guidance
Figure 8. Institutional Responsibilities by Functional Stream Designated by the Climate Change Act
Legend
CCC Responsibility
Responsibility of Department, LGU, or Other Oversight Body
Joint Responsibility of CCC with Other Department, LGU,
or Oversight Body
Shared responsibilities with:
Line Agencies
Implement regional and local actions
Engage stakeholders (enabling environment)
Government Financial Investments
Key development investments
DILG, NEDA
Build local adaptation capacity
Philippine Information Agency
Disseminate information
35
the private sector because the CCC has not yet successfully linked
them together, and thus it has not yet succeeded in creating
the necessary enabling environment to entice the private sector.
Despite its many roles, the CCC still must overcome the resource
strain that another signifcant expansion of providing secretariat
services to the PSFB may create. Te CCC has started to con-
solidate and delegate some of its tasks to other agencies so it can
refocus on its strategic policymaking role.
Te roles of and relationships between the CCC and the other
oversight agencies are not yet formalized, prioritized, or
streamlined, which can limit the CCCs efectiveness as a pol-
icy coordinating body. In particular, it is a very high priority to
clarify the relationship between the CCC and the NEDA, as well
as the DBM, with regard to climate change and the development
and use of the Monitoring and Evaluation (M&E) framework.
Te CCC has a mandate to manage, review, and guide the Gov-
ernments climate change initiatives, whereas NEDA and DBM
have more general devel-
opmental responsibilities.
Since the NEDA overseas the
implementation of the PDP,
improved alignment with
NCCAP could take place
if coordination between
the two agencies increased.
However, there are still no
standardized mechanisms
for aligning the NCCAP
outcomes and activities in
national and sector plans.
In the absence of standardized processes for carrying out updates
in consideration of climate change, the NEDA has no additional
guidance on climate change beyond what is currently in the PDP.
In the program budgeting process, it is often difcult to reconcile
the strategic function of oversight agencies managing specifc pro-
grams (like the CCC) versus the line management responsibilities
of oversight agencies of the Government (like the DBM). If the
scope for efective strategic review and redirection of priorities is
limited, the general objectives of line agencies tend to prevail over
high-level strategic goals. Some steps are being taken to clarify
these roles, but more work is required to establish a better balance
between oversight agency priorities and strategic, high level goals.
Coordination between Departments on the climate change
agenda is facilitated by the CCCC to ensure needed harmo-
nization and coordination at the highest level of government;
however, the CCCC has not yet been fully efective in carry-
ing out the climate agenda due to limited decision making op-
portunities and fragmented support. Decision-making, moni-
toring, reporting, and advocacy on climate change at the highest
level of government are not fully informed, and the CCCC has
no decision-making powers in the cabinet. Moreover, the CCCC
is often hampered by the failure of many principals to attend
meetings. Most attendees at the cluster meetings, except the Chair
and the head of the Secretariat, are Department Undersecretaries,
Assistant Secretaries, or Bureau Directors with no decision-mak-
ing power. Furthermore, the dual support services of the DENR
and the CCC have often led to a duplication of secretariat services
in the CCCC and competing demands on the CCC staf have
sometimes limited their ability to provide needed support to the
Cabinet. Te DENR Climate Change Ofce has backstopped the
CCCC leadership, both in technical and administrative terms in
these instances.
Departments employ diferent approaches to develop their
climate portfolio, in accordance with their organizational
needs, which highlights the need for fexibility in program
planning. A diversity of Departmental needs and capacities may
require fexible approaches and an integration of systems in a
phased manner. For example, the DA used a strategic planning
approach to develop a comprehensive climate change action plan,
giving climate change adaptation an organizational mandate. It is
being mainstreamed across all of the DA units (through an Ofce
of the Secretary Administra-
tive Order). Te resulting cli-
mate change actions have an
organizational mandate and
are well distributed across the
DA. In contrast, the DENR
does not have a comprehen-
sive climate change action
plan and its climate change
initiatives are a cumulative
pattern of actions that are
only rationalized retrospectively. Its practices are based on past
mitigation experiences at the program level rather than the entire
Department level, resulting in an uneven distribution of resources
(Forest Management Bureau, Environment Management Bureau,
Mines and Geo-science Bureau). Its preferred course of action is
evolutionary, incremental, system-conserving, and based on the
ongoing fow of available information.
Te organizational models to address climate issues have
varied across Departments based on the existing Depart-
mental structures and needs, with the DA and the DENR the
only Departments that have internal climate units. Te DA
created the Climate Change Program Ofce within its Planning
& Policy Department in 2011 to serve the entire department. As a
centralized unit, it has struggled to coordinate the execution of the
Departments climate initiatives. In contrast, the DENR created
a Climate Change Ofce in 2009 to service a joint DENR-GIZ
climate change adaptation program, which has also provided
support, on an as-needed basis, to the remainder of the Depart-
ment. It is stafed by personnel from the diferent DENR ofces
and contractual employees, and thus has a greater outreach than a
The diferent
approaches used by
each Department in
developing its climate
portfolio require fexi-
bility in coordination.
Formalized institu-
tional collaboration
between the Climate
Change Commission
and key Departments
and Agencies is an
important, required
next step.
36
stand-alone unit would. An important accomplishment of the unit
was the development of the Climate Change Adaptation Frame-
work, which has contributed to reorienting the DENRs focus
from mitigation to adaptation. Meanwhile, the DPWH does not
have a separate climate unit but is expected to create a cross-De-
partmental cooperation scheme. Te internal organizational struc-
ture of Departments could be an important determinant of their
efectiveness in pursuing or prioritizing climate objectives.
While Departments and Agencies use several diferent modes of
service delivery to support LGUs, some are more appropriate than
others in specifc circumstances. Tis highlights the need for ver-
tical convergence of activities for efective execution at the local
level. Te delivery modes include:
a. Co-management of an activity by an LGU and Depart-
ment is the simplest form of vertical coordination and
entails a partnership between an LGU and Departments
at the national level to execute a program through shared
responsibilities and the injection of Departmental resources
to the LGUs. Te LGUs are often better able to implement
and manage specifc local tasks due to their proximity and
local knowledge.
b. Regional ofces can be a bridging mechanism that coor-
dinates intra-Departmental services to LGUs, but a lack of
functional integration often hampers service delivery. Most
Departments have a hub-and-spokes management setup:
the DA, the DENR, the Department of Science and Tech-
nology, and the DPWH have feld ofces in all Philippine
regions.
8
To support the devolution of basic service delivery
to the LGUs, many central Departments have redirected
LGU support functions to their regional ofces.
c. Service convergence is when multiple government units
use the same medium or network facility at the LGU level
to improve vertical intergovernmental coordination.
Te CCC is a national agency with limited local presence, and
does not have the capacity to engage with all of the LGUs as
the NEDA and its sub-committees do. Still, it can take advan-
tage of establishing relationships to increase coordination on and
convergence of the climate policy agenda. For example, the CCCs
relationship with the Housing and Land Use Regulatory Board is
an entry point to assist with integration of adaptation in local de-
velopment plans. In addition, coordination and convergence of the
adaptation agenda at the local level has been successful through
Climate Field Schools and Integrated Ecosystem Management.
8 Te DOE is probably the only Department with very few regional ofces, but then it is
focused more on climate change mitigation.
On DRRM/CCA, despite the convergence at the policy level,
coordination has been difcult because of overlapping respon-
sibilities, action plans, and tools, and limited monitoring and
reporting requirements for climate adaptation and climate
related disaster prevention. Te LGUs are mandated to develop
LDRRMPs that are to be integrated into the CDPs and the CLUPs.
Both the CCC and the NDRRMC are required to coordinate with
each other on their engagement with the LGUs, and the two Agen-
cies have signed a memorandum
of understanding (MOU)
afrming their collaboration
to harmonize and coordinate
with each other in supporting
the LGUs and to develop a joint
work plan. However, in prac-
tice, there are no guidelines on
how to operationalize the MOU
leading to limited coordination
and collaboration between the
two agencies. Te DRRM and
CCA are not viewed within
a sustainable development
framework by most Agencies
and communities. Few LGUs have DRRM plans and strategies,
and most have been developed following a disaster, which increases
the chance that some CCA/DRRM plans may arrive too late for
many LGUs. Te DILG has been mobilized to supply DRR/CCA
protocols in cities and municipalities and to issue an ISO-type seal
of disaster preparedness for high performing LGUs.
Implementation of the Ecotowns approach is an efective
method of coordination from the national level to the LGU
level, and can help facilitate increased coordination between
LGUs. Ecotowns are implemented by the CCC on a pilot basis
and involve the establishment of ecologically stable and econom-
ically resilient towns at the LGU level on a demonstration basis.
Ecotowns attempt to blend sustainable development, natural
resource management, and climate action through sustainable
fnancing mechanisms, which are based on the payment for
ecosystem services and supplemented conditional cash transfers
for poverty alleviation.
9
Te President has ordered the scaling
up of the Ecotown project across various regions, increasing the
responsibilities based on preliminary results and demand from
LGUs. However, successful implementation typically requires
bringing multiple LGUs on board; as a fairly new agency, the
CCC has faced challenges in implementation as it does not have a
supporting regional or local network. Efective partnerships with
Departments with strong vertical structures that reach down to
local levels can help alleviate some of these challenges, while at
the same time freeing up staf resources to engage on the policy
and coordination functions of these programs.
9
Te CCC has piloted Ecotowns in twelve LGUs across the country.
Policy convergence
on addressing
climate-related
disaster manage-
ment has not led
to corresponding
convergence
on institutional
and fnancing
arrangements.
37
Community participation through Civil Society Organiza-
tions (CSOs) increases transparency of the climate policy
agenda and can help guide the climate resource allocation
process. NGOs have provided critical support for the climate
reform agenda, and maintaining the momentum for the reform
will require their continued support. NGOs were active in the
formulation of both the NFSCC and the NCCAP, strengthening
the mandate for the climate
agenda. Tey have participat-
ed in climate change steering
committees or task forces as
members institutionalizing
consensus-based climate poli-
cy-making. Continued avenues
for NGO participation include
the PSF Board, the CCC Ad-
visory Body, and the PDF. As
a pressure group, they monitor
UNFCCC negotiations and
the implementation of the
Climate Change Act. Civil
society and NGO participation increases transparency and builds
trust in communities. NGOs have improved public awareness and
helped garner the necessary popular support for climate change
and for the current reform program. Tey were instrumental in
the push for creating the PSF, and their continued participation in
the policymaking process will not only help policies and programs
remain responsive to community needs, but also strengthen the
decision making process.
Leveraging a low-carbon
green-growth strategy and
market-based instruments
can strengthen engagement
with the private sector
Tough mitigation activities are being carried out, there is
currently no common strategy dictating roles and responsibil-
ities on low-carbon development and green growth. Eforts to
develop low-carbon, green growth policies need strong coordination
under a comprehensive national low-carbon development plan. In
the Philippines, diferent Departments have developed an assort-
ment of low carbon initiatives based on their interests and needs,
but activities have been carried out on an uncoordinated basis. Te
CCC is currently spearheading several projects with key govern-
ment Agencies to establish a national system for the preparation
of GHG emission inventories, to formulate National Appropriate
Mitigation Actions and Low Emission Development Strategies, and
to develop Monitoring Reporting Verifcation systems to support
implementation and evaluation of mitigation actions. Development
partnersincluding the European Union, the governments of
Germany (BMU) and Australia (Ausaid), the United Nations De-
velopment Programme (UNDP), and the U.S. Governmenthave
supported and complemented these eforts. However, the piecemeal
approach by which these programs have been developed and their
fragmentation across sectors may create difculties in prioritizing
activities. A more comprehensive approach, backed by a common
policy, would not only facilitate prioritization and coherence to
better manage trade-ofs, but also provides the necessary signal to
promote greater private sector engagement.
While some sector policies have promoted Market Based In-
struments and private sector engagement, their scope remains
limited to a few sectors. As mentioned, the climate agenda
calls on the private sector to fnance mitigation activities, while
the government remains responsible for building the enabling
environment, making collaboration highly important. Increased
engagement of the private sector in the renewable energy and
energy efciency programs is achievable with the support of energy
sector reforms, which is already evident following the deregula-
tion, restructuring, and privatization of government companies
and agencies. Te deregulation of the power sector has provided
many incentives and has brought in private resources and players
to support mitigation eforts. Some of these programs include tax
holidays for carbon credits, renewable portfolio standards, fnan-
cial incentives for wind geothermal and mini-hydro development,
tax exemptions for biofuels, building and equipment standards,
cleaner production technology, efcient lighting, eco-labeling, and
the sustainable consumption program.
Diferences in the
classifcation of climate
PAPs hinders climate budget
planning and prioritization
Te various approaches to
defning what constitutes a
climate change activity have
led to inconsistencies in clas-
sifying and defning the level
of funding budgeted for cli-
mate PAPs. To assess climate
PAPs, the CPEIR used four
diferent approaches that have
either classifed current PAPs in
the budget, or provide criteria/
activities to identify climate PAPs in the budget. Tese include
the NCCAP, KRA-5, the Departments work programs, and PAPs
based on the climate fnancing classifcation system developed by
several multilateral development banks (MDBs). Tese initiatives
Civil Society has
played an important
role in the develop-
ment of the climate
agenda, helped
increase transparen-
cy, and can help keep
the momentum for
reform going.
The diferent
approaches to
classifying climate
PAPs results in a
three-fold variation
in the level of climate
expenditures.
38
Table 1. Comparison of Selected Major PAPs by Diferent Tagging Initiative
Selected Major PAPs KRA-5
1
Departments
Work Programs
2
NCCAP
3
Classifcation
System of MDBs
4
Flood Control (DPWH) Excluded Included Included Included
Quick Response Fund Included Excluded Excluded Excluded
Calamity Fund Excluded Excluded Excluded Excluded
Disaster-related Rehabilitation (DPWH) Excluded Included Excluded Excluded
PAPs fnanced by Special Accounts Excluded Excluded Included Included
1
Based on selections by the DBM and sector Departments/Agencies.
2
Based on selections by sector Departments/Agencies.
3
Based on selections by the CCC and sector Departments/Agencies.
4
Based on selections by MDBs. (Note: Based on the MDBs criteria, all PAPs contributing to mitigation and all PAPs that indicate in the title a link to climate change/adaptation/
DRRM were tagged.)
have, however, used diferent defnitions for climate PAPs result-
ing in diferent classifcations. For instance, food control projects
were classifed as an adaptation activity by the NCCAP, the De-
partments work program, and the MDBs, but not included under
KRA-5 (Table 1). On the other hand, some post-disaster related
investments were tagged under KRA-5 and the Departments
work programs but not included by the others. Likewise, climate
PAPs funded through DOEs Special Accounts were not consis-
tently classifed by all initiatives, and only included under the
NCCAPs and MDBs classifcation. A particular case constitutes
the work program of the DA, which includes entire programs
such as the National Rice Program, the National Corn Program,
and the Bureau of Agricultural Research, even though only a
few activities within these programs address climate change. In
contrast, all other initiatives have tagged only a selected number
of small climate PAPs managed by the DA, which are largely
considered to address climate change (such as the promotion of
organic agriculture). On the whole, given the general formulation
of NCCAP outcomes and activities, the largest number of climate
PAPs included in the budget were identifed under the NCCAP
classifcation (Table 1).
While eforts have been made by DBM to strengthen the
classifcation of climate PAPs under KRA-5 for 2013, there
is still insufcient clarity and guidelines on the selection of
activities, Departments, and Agencies included under KRA-5.
Under KRA-5, the identifcation of climate PAPs is not confned
to the major programs, and PAPs of all members of the CCCC
were included under KRA-5. However some inconsistencies
remain that render the tracking of climate PAPs over the past
three years difcult. First, PAPs from diferent Departments
and Agencies were tagged for diferent years, and not all of the
Departments or Agencies tagging PAPs are part of the CCCC
(e.g., the Department of Health, NEDA, Department of Social
Welfare and Development, or the Land Bank of the Philippines).
Second, diferent Departments tag similar activities diferently.
For example, the DA tagged the Quick Response Fund in 2012
but the DPWH did not tag the Disaster Rehabilitation Project in
KRA-5 2013. Tere is a need for guidance and application of con-
sistent criteria to ensure that similar climate PAPs can be tracked
over the years.
Departments work programs 20112016 have refected an
efort to identify available resources and estimated funding
needs for climate PAPs. Departments were requested by the
CCCC to prepare a work program for 20112016 that included
funded and planned climate-related PAPs. Departments were
requested to identify PAPs and not subcomponents (specifc activ-
ities). While the initial plans were to update the work programs
annually, such updates have not been conducted. Analysis of the
initial work programs shows that:
Te Departments that are within the scope of the CPEIR
account for the bulk of the funding reported in the work
programs (on average, 90 percent) over the period 20112016,
with the main funding proposals being derived from DA and
DPWH.
Te inclusion of total appropriations for a PAP, even though
only some activities embodied in the PAP address climate
change, overstates the reported climate appropriations.
Te Departments work programs for 20112016 are only
partially aligned with the NCCAP activities, because the
latter were being drafted as the work programs were prepared.
Te estimated funding needs are signifcantly higher than
the actual appropriations in the Departments within the
CPEIR scope.
39
Climate appropriations have
been increasing relative to
overall Government budgets
Climate appropriations have been increasing steadily in the
past fve years across the budgets of all Departments and
Agencies, regardless of the classifcation approach used. As
indicated in Figure 9, climate appropriations supporting the NC-
CAP have increased by nearly two and a half times in real terms
over the past fve years, from Php 12 billion in 2008 to Php 35
billion in 2012. Te Department work programs have followed the
NCCAP trend quite closely.
Climate appropriations tagged
under KRA-5 increased from
Php 9 billion in 2011 to Php
16 billion in 2013, an increase
of 66 percent in real terms.
Despite this increase, KRA-5
accounts for, on average, only
1 percent of the total sum of
KRAs between 2011 and 2013.
Tis is, however, associat-
ed with the fact that PAPs were tagged according to Agencies
mandates under the KRAs (1-5), which means that they are not
excluded from the total national budget, but just not captured
in the current system of KRA tagging. Te MDB classifcation
identifes a total budget for climate PAPs of Php 50 billion in 2013
that has increased signifcantly over the past years, from Php 16
billion in 2008. Te MDB classifcation accounts for the highest
amount of climate appropriations among the four approaches, as
it covers major PAPs (notably food control protection and trafc
decongestion) that represent two-thirds of its climate appropria-
tions in 2013.
Climate appropriations have
been funded largely from
domestic sources, while
development partner support
has concentrated on food
control and management
Sources of funding for climate change activities stem primar-
ily from government sources through the General Appropria-
tions Act, Special Purpose Funds (SPFs), and Special Account
in General Funds. Domestic resources have funded on average
82 percent of climate expenditures in the four selected Depart-
ments (DPWH, DENR, DOE, PAGASA) between 2008 and
2010. However, develop-
ment partner support is very
concentrated, with Depart-
ment of Public Works and
Highways accounting for 80
percent of the total develop-
ment partner support (most
of which is focused on food
protection). About 94 percent
of the climate expenditures in
the remaining Departments
are fnanced from domestic
sources. Development partner
support has also played an important catalytic role in fnancing
pilot activities, providing global knowledge, and developing
lessons learned. While most of the domestic funding stems from
the GAA, Special Accounts provide a third of the funding for the
Department of Energy. While Special Accounts clearly ofer some
fexibility in managing resources, they can weaken accountability
for the use and absorption of funds.
Climate budget
appropriations have
been increasing
indicating increased
leadership and
growing awareness.
The efectiveness
and efciency of
systems for plan-
ning, executing,
and reporting on
climate PAPs is the
key to delivering
climate results.
Multiple approaches used for classifying climate
activities across the Government make bud-
get planning and prioritizing for climate PAPs
difcult and result in a three-fold variation in
climate appropriations.
Figure 9. Climate Appropriations by Classifcation,
2008-2013 (in Php billions)
1
1 The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP.
40
Climate appropriations
focus on a few large PAPs
10

Climate appropriations represent a small part of the national
budget, but have grown faster than the total budget appropri-
ations for each of the Departments included in the CPEIR.
Te total climate appropriations have increased from 0.9 percent
in 2008 to about 1.9 percent of the national budget in 2012. Tis
corresponds to about 0.3 percent of GDP, which falls below the
Stern review recommendations that countries should expend at
least 2 percent of GDP to implement climate change action. Given
the level of vulnerability in the Philippines, it seems important
for the Government to reassess allocations in the budget across
Departments to fnance climate action. Climate appropriations
have been increasing in magnitude, and rose at a faster average
annual rate (26 percent) than the national budget (6 percent)
between 2008 and 2012. Tis is mirrored by faster growth of
climate budgets in absolute and relative terms across Departments
in comparison to their total appropriations (Figure 11).
10
Te NCCAP classifcation system is used for the remainder of the analysis of the report,
as it provides the best estimate based on the Governments climate policies.
Climate appropriations are concentrated in a few Depart-
ments, with a few major PAPs accounting for a large share of
the total climate appropriations. Te DPWH commands the
lions share of total climate appropriations (52 percent), yet climate
change appropriations account for only about 10 percent of its to-
tal budget. It is followed by the
DENR and DA, which account
for 33 percent and 9 percent of
the total climate appropriations,
respectively (Figure 12). Te
distribution of funding across
the Departments refects the
Governments commitment to
prioritize investments for food
control protection (DPWH)
in the face of periodic fooding
events in the recent past, and
the National Greening Program (NGP) by DENR. Increases in
appropriations for the Philippine energy efciency project since
2010 and the creation of Electric Vehicle Project in 2013 have
resulted in spike in DOEs funding. Similarly, funding for DA has
increased due to several projects managed by the Philippine Rice
Research Institute and the Tamang Abono Program.
Most of the climate expenditures and appropriations in the
Departments reviewed by the CPEIR fall under the NCCAP
priority on Water Sufciency, followed by Ecosystem and
Environmental Stability, and Food Security. While funding for
some NCCAP priority areas, such as Food Security, are covered
largely by one Department, funding for other NCCAP priorities
are spread across several Departments. Funding for NCCAP prior-
ities has been steadily rising in the past fve years, with the largest
growth arising from appropriations for NCCAP priority on Water
Sufciency (from about Php 6 billion to about Php 20 billion).
Budgetary appropriations in support of the NCCAP priority on
Food Security increased by more than 140 percent in real terms
since 2011, from Php 3.3 billion to Php 8.3 billion in 2012 (Figure
Figure 10. Evolution of Climate Appropriations Based on the NCCAP
Classifcation, 20082013 (on appropriation basis, in Php billions)
1
Source: DBM, DA, DOST [PCIEERD, PCAARD, PCHRD].
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP.
Figure 12. Trends of Climate Appropriations by Department/Agency,
2008-2013 (on appropriation basis, in Php billions)
1
Source: DBM, DA, DOST [PCIEERD, PCAARD, PCHRD].
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP.
Figure 11. Growth Rates of Climate Appropriations and Total Budget
Appropriations of Departments/Agencies, 2008-2013 (in %)
1,2
Source: DBM, DA, DOST [PCIEERD, PCAARD, PCHRD].
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP
2
For the DA, 20092012 average annual growth rates are included.
The increase in
climate appropria-
tions results from
the signifcant
expansion of a small
number of major
climate PAPs.
41
13).
11
Tis upward trend coincides with the DAs eforts in 2011
and 2012 to mainstream climate change aspects in budget plan-
ning, including the reinforcement of some ongoing activities (e.g.,
education and training on climate change resilience or activities
related to weather-based insurance) and the development of new
climate changerelated activities (e.g., the composting or the adap-
tation and mitigation projects managed by PhilRice). Finally, PAPs
supporting the NCCAP Priority on Ecosystem and Environmental
Sustainability have also supported the upward trend, increasing
from Php 3 billion to nearly Php 10 billion owing to large-scale
investments in the NGP.
Expenditures and appropriations supporting the NCCAP
priority on Water Sufciency are concentrated on improving
water governance, primarily through food control protection,
and are higher than the targets refected in the PIP. Nearly
all of the expenditures and appropriations are allocated to the
food control protection PAPs
to rehabilitate and protect
watersheds and river basins in
support of the NCCAP output
CCA and vulnerability reduc-
tion measures implemented.
Te governments strong com-
mitment to address fooding,
drainage, and shore protection
is shown by budgetary alloca-
tions in the 2013 budget (Php
20 billion) that exceed pledges made in the PIP (Php 14 billion)
and the DPWHs work program (Php 13 billion). Many of these
activities primarily address the rehabilitation and protection
of watersheds and river basins in direct support of perennial
11
Te selection of climate appropriations for the DA made use of information at the sub-
PAP level, which was prepared by the DA during the 2012 NEP review and based on a
special request by the Senate. Te exercise focused on attributing DAs budget (including
its attached agencies) with its strategic sector goal sector resilience to climate risks
increased. Tis goal is part of the DAs commitment inscribed in the PDP together with
two other sector goals related to improved food security and increased rural incomes
and enhanced policy environment and governance. Tis exercise did not include the
2008 budget fgures, and only captured at the time 2013 budget fgures based on the
Department and Agencies estimates. A similar exercise for 2008 and 2013 NEP data could
not be conducted due to time constraints.
fooding in outlying areas and cities. While not always document-
ed separately, other activities have also been funded, such as the
use of bioengineering technologies to strengthen the resilience of
infrastructure, upgrading food control and road drainage stan-
dards, provisioning underground detention tanks, establishing
retarding basins, desilting rivers, and installing food monitoring
and warning systems. Appropriations in favor of the NCCAP
output to improve water supply and demand are either small
(rainwater collectors) or could not be identifed (localized water
systems), or are implemented by the National Septage and Sewage
Program (implement the Clean water Act and the National
Septage and Sewage program), which was only recently launched
on a pilot basis.
12
Another NCCAP activity, the improvement of
water quality of surface and ground water, is partially supported
by DENRs budget through the implementation of the opera-
tional plan for the Manila Bay Coastal Management Strategy
and EMBs budget (under water quality management); however,
the appropriations are not reported separately in the budget and
instead merged with other budget items.
Te majority of funding for the NCCAP priority on Ecosys-
tem and Environmental Stability has in recent years support-
ed the development and implementation of mitigation and
adaptation strategies for key ecosystems. Te DENR accounts
for 90 percent of all budget appropriations under this priority.
However, the alignment is not straightforward because the PAPs
also contribute to activities under other NCCAP outputs (e.g.,
implement the National REDD-Plus Strategy). Te identi-
fcation of funding activities related to the management and
conservation of protected areas and biodiversity areas, performed
under the Protected Area & Wildlife Service PAP, is more clear-
cut. Forest management (such as the NGP) together with land
managementrelated activities (e.g., land services) accounted for
84 percent of total appropriations in 2012. Tis suggests a clear
priority toward high-scale investments, raising some questions
about sufcient funding in capacity building, research, and
broader ecosystem management (Figure 14c). Te NGP is a na-
tional priority program, managed by the DENR Ofce of the Sec-
retary. It is a large forest rehabilitation program focusing mainly
on plantation development, such as seedlings produced, area
planted, jobs generated, and contracts issued. While many NGP
activities provide multiple benefts, including poverty reduction,
enhancing food security, environmental stability and biodiversity
conservation, and carbon sequestration, the program is tagged as
providing mitigation benefts.
Te DAs climate appropriations to food security are spread
across 86 PAPs, though the bulk of funding is focused on a few
major PAPs. Most of the DAs climate appropriations (93 percent
in 2012) fall under its frst two climate sector strategies addressing
the reduction of climate change-related risks and the vulnerability
12
Te level of adequacy of funding is difcult to judge for two reasons: (1) most PAPs
included in the PIP were not included in the 2012 budget exercise conducted by the DA,
and (2) the bureaus and agencies included in the PIP are diferent from those included in
the 2012 budget exercise conducted by the DA.
Figure 13. Composition of Expenditures and Appropriations
by NCCAP Strategic Priority Area, 2008-2013 (on obligation
and appropriation basis, in %)
1
Source: DBM, DA, DOST [PCIEERD, PCAARD, PCHRD].
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP
Flood control pro-
tection is the largest
PAP, accounting for
at least 40 percent
of climate appropria-
tions each year.
42
of natural ecosystems and biodiversity (72 percent) and increase
the resilience of agriculture communities (22 percent). However,
67 percent of this total account for three projects managed by
PhilRice, the Tamang Abono Program (composting activities), the
small-scale irrigation projects managed by the Bureau of Soils and
Water Management (BSWM), and activities covered by the Re-
gional Field Unit 1. Budgetary allocations in favor of risk-reducing
mechanisms have been decreasing in real terms between 2009 and
2011. A challenge remains to ensure that climate vulnerabilities are
refected in the premium for which a new insurance weather index
still needs to be established. In contrast, allocations to strengthen
the capacity of communities and conduct vulnerability assessments
are quite modest, representing 6 percent and 3 percent of total
climate change related budget allocations, respectively. (Figure 14).
Mirroring the large expansion of the DOE climate appro-
priations, the appropriations and expenditures for NCCAP
Sustainable Energy priority grew from around Php 0.2 billion
in 2008 to about Php 3.8 billion in 2013. With the exception
of 2009, the budget increased
steadily by 117 percent in real
terms from 20082011, but
experienced a large boost from
20122013 due to the funding
of the Electric Vehicle Project.
On average, promotion of
energy efciency and conser-
vation accounts for 71 percent
of total climate appropriations
and obligations, whereas
appropriations and obligations
on environmentally sustainable transport and renewable energy are
low in both relative and absolute terms. Future funding needs will
need to focus mainly on the implementation of the Governments
Energy Management Program and the renewable energy roadmap
for which the DOE is carrying out an initial resources assessment
(Figure 14d).
Te rise in appropriations has not been matched by
corresponding increases in obligations, suggesting
potential opportunities to increase impacts by strengthening
fnancial efciency. Te impact of public spending depends on
the fnancial efciency with which the allocated resources are
managed. While the lack of comparability of obligations and
appropriations data makes it difcult to obtain an accurate pic-
ture of budget execution rates, the limited data available suggest
that budget execution rates for the four Departments (DPWH,
DOE, PAGASA, and DENR) assessed have varied over the years,
ranging between 64 and 104 percent. Tree of the four Depart-
ments have budget execution rates below 40 percent for at least
one of the four years assessed. More telling is the diference in the
increase in obligations for the four Departments, which have risen
by 38 percent between 2008 and 2011 compared with increases in
appropriations for these four Departments of 213 percent.
Figure 14. Climate Expenditures and Appropriations by the NCCAP
Thematic Priority, 2008-2013 (in Php billion)
A) Department of Agriculture
B) Water Sufciency
Energy efciency
and conservation
account for the
vast majority of
spending under the
Sustainable Energy
Thematic priority.
43
Financing gaps for
knowledge and capacity
development may slow
implementation progress
While the PIP includes some major activities that support
NCCAP goals, their contribution to these goals are difcult
to determine and require further review. Te PIP aims to prior-
itize PAPs that contribute to the attainment of PDP goals. While
the PIP is not focused on NCCAP activities or goals, it includes
PAPs that support NCCAP goals included in the PDP such as
food protection, the NGP, and integrated coastal resource man-
agement and the renewable energy project. Te extent to which
these programs contribute to NCCAP goals is difcult to assess
due to the lack of climate indicators and monitoring.
In comparing funding needsas expressed in the De-
partments work programs and the PIPwith the budget,
some climate PAPs suggest being adequately funded while
others remain underfunded or not funded at all. Based on an
assessment of four selected sectors (agriculture & fshery, water,
environment & natural resources, and energy) in the PIP, several
fndings could be drawn from the analysis:
Agriculture & fshery sector
13
: Despite signifcant funding
planned for the development and implementation of the
National Farmers Registry System and the Inventory System
of Agriculture and Fishery Investments in the PIP, respective
appropriations were not mobilized under the 2013 budget.
Similar, the DA has not yet pursued activities related to
research on climate-resilient crop varieties, water conserva-
tion, establishment of feld schools, and the setup of a climate
database that informs technical and planning units on loca-
tion-specifc climate risks.
Environment & natural resource sector: Te Clonal Nursery
project has been delayed by a year and falls short by Php 400
million in comparison to the commitments in the PIP for
2013. Some evidence suggests that small-scale activities for
ecosystem stability services might lack funding or might not be
sufciently funded. For instance, funding for the ground water
resource assessment has not yet been mobilized in the budget.
13
Te level of adequacy of funding is difcult to judge as most PAPs included in the PIP
were not included in the 2012 budget exercise conducted by DA; similar bureaus and
agencies
D) Sustainable Energy
1
C) Ecosystem and Environmental Stability
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based
on GAA Budget, and 2012 fgures are proposed NEP. For all other Departments,
20082012 fgures are based on GAA Budget, and 2013 fgures are proposed NEP.
44
Energy sector: Te funding for alternative fuels for transport
program, the biofuel program, and the National Energy Ef-
ciency and Conservation Program were delayed compared with
commitments in the PIP, and resources were only allocated in
the 2013 budget. Funding for the clean feet program and the
adoption of the integrated land use and transport planning
process were not secured in the 2013 budget.
Water sector: Funding for water harvesting technologies or
the profling of watersheds and river basins is small. For oth-
ers (notably related to water supply and weather forecasting),
more work is needed to understand the adequacy of funding
and potential funding gaps.
Capacity development, which is included in the various
NCCAP priorities as well as the overall NCCAP priority
to fund knowledge and capacity development, is largely
underfunded. Overall the NCCAP priority on Knowledge and
Capacity Development accounts for a very minor part of climate
appropriations (Figure 13). Capacity building and research under
the Ecosystem and Environmental Stability priority appears to
be underfunded. Under the Food Security priority, allocations
to strengthen the capacity of communities and conducting
vulnerability assessments represents only 6 percent and 3 percent
of total climate change related budget allocations, respectively. In
the Water Sufciency priority, the DENR is responsible for the
implementation of several capacity building projects (on IWRM
and adaptation planning) and studies (water and supply demand
analysis), the Department has not been able to secure respective
funds in the 2013 budget.
Some NCCAP priorities and sub-activities were not fully
identifable in the budget and could be either underfunded or
not funded. Tree outputs under the Ecosystem and Environmental
Stability priority seem to be unfunded: the strict implementation
of environmental laws, the institutionalization of natural resource
accounting, and the enhancement for integrated ecosystem-based
management approach in protected areas and key biodiversity areas.
Furthermore, as the NDRRMC is the only agency with a mandate
to carry out activities under the Human Security priority, the level
of funding for this priority could be subject to discussions.
Finally, funding for activities under the Climate-Smart Industries
and Services are either at an initial stage or are mainstreamed under
the Government Accounting System and through support to op-
erations. Tis weak level of funding or ability to identify activities
could very well be tied closely to the lack of coherent roles and
responsibilities for carrying out climate action.
While several NCCAP priorities seem to be covered by only
a few major PAPs, there are signifcant opportunities to scale
up many key activities. Te DA has not yet pursued activi-
ties related to research on climate-resilient crop varieties, water
conservation, establishment of feld schools, and the setup of a
climate database that informs technical and planning units on
location-specifc climate risks. In addition, funding for remote
sensing as well as for the expansion of the web-enabled Geograph-
ic Information Infrastructure in Agriculture and Fisheries was
not secured under the 2013 budget, but could be implemented.
Similarly, several tools related to capacity building, training, or
the mainstreaming of climate change adaptation in planning are
conducted at a pilot basis only and could be expanded upon.
LGUs are action-oriented,
but sources of funding are
fragmented and their available
amounts are limited
At the local level, the Makati
City and Albay Province case
studies indicate success in
integrating climate change
in development plans (CDPs,
CLUPs, and MDPs). Te two
case studies carried out through
the CPEIR indicate that they
expend a greater share or their
budget on climate change pro-
grams than the national government, refecting strong leadership,
commitment, and concern. At 761 Php million, Albay has appro-
priated about 15 percent of its budget for climate change/DRRM
programs, while Makati Citys expenditures accounted for more
than 8 percent at a total of Php 5.9 billion. Tese amounts may in-
clude expenditures on disaster response, recovery, and preparedness,
so overstate the climate expenditures. Nevertheless, compared with
the 2 percent average at the national level, these commitments are
fve to nine times higher as a share of the total budget.
Te CPEIR indicates that climate appropriations at the
local level are directed toward the primary concerns of the
LGUs. Te province of Albay is much more vulnerable than
the municipality of Makati, which is refected in the way their
climate expenditures are
appropriated (see Box 1).
Climate appropriations in
Albay are focused almost
entirely on climate change
adaptation, which accounts for
more than 97 percent of the
total climate change spending
from 20082012 (Figure 15).
About 30 percent is mainly
for infrastructure outlays in
support of the redirection
of development toward less
hazardous, lower-risk areas,
and mainstreaming climate change adaptation in the Provincial
Development Plan, while the remaining 70 percent is directed
toward addressing disaster risk mostly for recovery, rehabilita-
Capacity develop-
ment accounts
for a very small
share of all Depart-
ments budget
appropriations.
Mainstreaming
climate change in
land-use planning and
the presence of sup-
portive local policies
have contributed to
the relative success in
funding climate action
at the local level.
45
tion, and preparedness. In contrast, Makati City spends about
55 percent of climate appropriations on adaptation, with most
of it going to support food control, and 45 percent on emissions
mitigation activities. Tis is consistent with the citys focus on
promoting itself as a green and livable city. While its climate
mitigation expenditures have fuctuated from year to year, they
peaked at 5.3 percent of total expenditures in 2012. Te citys
spending on GHG emissions mitigation is focused on transport
sector interventions (about 64 percent) that are intended to reduce
GHG emissions by reducing vehicular trafc,
14
along with the
promotion of energy efciency (about 34 percent) (Figure 16).
14
Tese include road improvement projects and the construction of more walkways con-
necting diferent buildings in the central business district. Te citys transport strategy also
includes the adoption of the e-jeepney, and the anti-smoke belching campaign.
Box 1. Contrasting Circumstances,
Similar Successes: Case Studies on
Makati and Albay
While the province of Albay and the city of Makati have led
proactively on the climate agenda, their circumstances are
quite diferent, presenting contrasting case studies of local
leadership on the climate agenda. Both LGUs have led the
mainstreaming of climate change policies and actions in their
respective areas by incorporating climate change issues in
development and land-use plans, enacting complementary
local policies, fnancing climate
action from their own budgets,
and mobilizing additional ex-
ternal resources. They present
contrasting case studies due
to diferences in their exposure
to climate hazards, specifc vul-
nerabilities, per capita income
levels, and incidence of poverty.
The level of vulnerability, fscal
capacity and poverty incidence
have clearly guided both Albay
and Makati in their climate plan-
ning process. Albay is a highly
vulnerable LGU with a high
poverty incidence and low fscal
capacity, which have guided its
focus on CCA and DRRM. The
province is highly exposed to
climate- and weather-related
hazards, experiencing three to
fve typhoons annually, and has
been identifed by the NDRRMC
as being at high or very high risk for temperature and precipita-
tion changes, as well as typhoons. The provincial government of
Albay is one of the poorest in the country, with a per capita in-
come of 837 pesos in 2009, less than half the national average.
The incidence of poverty in Albay has remained high at roughly
43 percent, which is signifcantly higher than the national aver-
age of 2526.5 percent in 20032009. In contrast, Makati City
is a less vulnerable LGU with a low poverty incidence and high
fscal capacity, highlighting the local competitive advantages of
engaging in climate action. The city is less exposed to climate
and weather-related hazards compared with the rest of coun-
try, but it has experienced fooding in some of the barangays
along the Pasig River. It had the lowest poverty incidence (1.4
percent) among all Philippine cities in 2009.
Cognizant of the adverse impact of climate and weather-related
hazards on poverty reduction and the achievement of the MDGs,
the provincial government of Albay has proactively enacted
policies and programs that have facilitated the fnancing of cli-
mate action, despite its relatively weak fscal capacity. The Albay
Provincial Government started to mainstream CCA and DRRM
in its provincial development plan even prior to the enactment
of the Climate Change Act and the DRRM Act. For instance, in
2007, the Government proclaimed CCA as provincial policy in
2007, funded the Albay Action for Climate Change program in its
budget, and reorganized the PLUC and CLUP Technical Working
Group. In 2009, the Provincial Development Council approved
the 20112016 Provincial Development and Physical Framework
Plan, explicitly recognizing climate change action and disaster
risk reduction as essential to the attainment of the provinces
overall development goal of achieving the MDGs. Its develop-
ment plan ordains the concentration of high-regret investments
and developments in landscapes that are less exposed to haz-
ards and which are not environmentally constrained.
The Makati City Government has proactively enacted policies
and implemented programs to address environmental con-
cerns, including those raised by climate change. Formulated in
2000, the latest CLUP recognizes the need to address existing
environmental concerns for preserving the citys predominant
status as the center of fnance and commerce in the country.
In line with this, the citys legislative body has passed several
ordinances on environmental management and the city has
developed PAPs (e.g. solid waste management, urban greening,
and vehicular emission control) aimed at improving livability
while reducing GHG emissions. In recent years, the city has
been actively participating in various global networks of cities
on benchmarking and capacity-building activities related to CC
and DRM. While the impacts of climate and weather-related
impacts are less severe than other parts of the country, the city
continues to undertake measures to reduce fooding risks in
low-lying areas. A revised CLUP is about to be approved.
Proactive main-
streaming of
climate action,
coupled with
strong leadership,
global knowledge,
and supportive
local policies, have
contributed to the
relative success of
Makati and Albay
in funding and
implementing
climate PAPs.
Figure 15. Appropriations for Climate Change Initiatives of
the Province of Albay, 2008-2012 (in Php billions)
Source: Status of Appropriations, Allotments and Obligations
of Provincial Government of Albay, various years
46
Beyond the two case studies, LGUs most vulnerable to the
impacts of climate change have the greatest need for public
support yet have the least capacity to provide support under
the current revenue sharing arrangements. Provinces have
been classifed for their risk of experiencing four weather-related
hazardsfooding, rainfall change, El Nio, and typhoonsin
a 2010 Global Facility for Disaster Risk Reduction study. Te
provinces and municipalities at
high or very high risk of being
afected by these hazards also
have higher poverty incidence,
hence the greatest need to pro-
vide public support. However,
these LGUs are on average
poorer, with lower total income
per capita (Figure 17). In the
aggregate, about 70 percent of LGU income is derived from the
Internal Revenue Allotment (IRA), a direct transfer of resources
from the national government accounts to LGUs. Te amount of
the transfer to each LGU depends on its area and population and
not on the level of its vulnerability. While LGUs can also generate
income from their own sources, the poorer LGUs have limited
capacity to do so, relying on the IRA for nearly 90 percent of their
income. Among LGUs, the average per capita income of cities is
more than twice the average per capita income of provincial and
municipal governments, refecting their greater capacity to mobi-
lize own resources.
Funding of climate PAPs at the local level is highly fragment-
ed, making it difcult for LGUs to plan efectively (Figure
18). Te LDRRMF and the LDF are the primary potential
sources of funding for climate change related activities at the local
level. In turn, both of these funds are sourced from the General
Fund income of LGUs, which, as mentioned above, varies across
LGUs. Te LDRRMF, aimed to fnance DRRM, accounts for
5 percent of the regular General Fund income, and the LDF,
aimed to fnance development (which includes adaptation and
DRRM), accounts for 20 percent of the IRA. Te LGC further
provides that the LDF can only be used to fnance projects that
are explicitly identifed in the Local Development Plan. Given the
fairly large fscal autonomy granted to LGUs and the many devel-
opment priorities that they have, climate change adaptation and
mitigation programs and projects often have to compete against
the demand for funding from other development priorities. Tis
highlights the need to mainstream climate change in local devel-
opment planning. On top of their regular General Fund income,
LGUs may also tap into other sources of fnancing, including
categorical or conditional grants from the national government
(e.g., PCF, PDAF, BUB, PSF and grants from DPs). LGUs can
also receive direct funding from national government agencies
for climate PAPs that previously were the responsibility of the
national government. NG-LGU cost sharing schemes are meant
to leverage national government resources and to induce LGUs to
provide greater funding for the specifed service or program. Each
source of fnancing has its own set of rules complicating access,
but they play a signifcant role in ensuring sufcient fnancing for
lower-income LGUs such as Albay. Total fnancial assistance re-
ceived from Agencies and various DPs in Albay from 20082012
was equal to about 82 percent of what the provincial government
spent on its own, allowing the province to implement a host of cli-
mate change activities; however, this is a unique example as most
LGUs have weak capacity to mobilize such resources.
Te PSF, which represents a dedicated source of funding at
the local level, is aimed at adaptation but has gaps in coverage
and is not yet operational. As currently structured, only the
LGUs and communities can submit proposals for consideration
by the PSF Board. Given the size of the PSF, this selectivity may
be appropriate. However, this seems to preclude the funding
of adaptation activities undertaken by other regional entities
or the Agencies that directly support multiple LGUs and local
communities through a number of important programs, such as
forecasting and early warning systems and the strengthening and
establishment of regional information networks. Such programs
will need to be funded by the National Agencies as part of their
regular budget, so it is important that they have adequate incen-
tive for prioritizing them in their work program. Te modalities
of how such inter-LGU or multi-LGU programs can be funded
and the incentives for individual local governments to propose
such programs with large spillover benefts outside of their own
jurisdiction is not indicated. Moreover, the IRR exempts PSF
Figure 16. Spending on Climate Change Programs
and Projects of Makati City, 2008-2012 (in Php billion)
Source: Makati City Government
Figure 17. Per Capita LGU Income of Provincial Governments,
Ranked According to Various Hydro-meteorological Risks, 2009
(in Php)
1,2
1
List of provinces subject to high/ very high risk for fooding, rainfall change,
El Nino, typhoons obtained from GFDRR (2010).
2
Similar disparities exist for municipalities, even though the diferences are
somewhat smaller for them compared with provinces.
Poorer LGUs have
lower fscal capacity
and are often also
the most vulnerable
to climate risk.
47
projects from ICC review and approval processes, resulting in a
more streamlined but fragmented process. In addition, mech-
anisms to help prioritization for the proposals in a transparent
manner are not yet available. Such issues must be considered by
the PSF Board in establishing its operational guidelines and when
operationalizing the fund. Te operationalization of the PSF can
not only serve as a catalyst for local climate fnancing but also can
be a stepping stone for preparing the institutions and processes
to accept international fnance that might be available from the
Green Climate Fund or other private sources.
Climate appropriations
have been focused on
adaptation, but the share
of appropriations for
mitigation funding has
been rising faster
Nearly three-fourths of climate appropriations have been
directed toward adaptation intervention over the 20082013
periods, though the share of appropriations directed toward
mitigation has grown faster on average. Te PAPs addressing
climate change are classifed based on a simplifcation of the
MDB classifcation system into:
i. Adaptation only
ii. Mitigation only
iii. Adaptation and mitigation
In 2008, about 76 percent of climate appropriations were directed to
PAPs that provided adaptation benefts, while about 11 percent were
directed to PAPs with mitigation benefts (Figure 19). Appropria-
tions for mitigation PAPs have grown at an average annual rate of 46
percent, more than twice as fast as PAPs providing only adaptation
benefts, which grew at an average annual rate of 17 percent. As a
result, in these fve years, the share of appropriations directed to
adaptation has dropped to 65 percent while appropriations for PAPs
with mitigation benefts rose to nearly 29 percent. Te rapid increase
in mitigation appropriations in the last fve years comes primarily
from the expansion of the NGP, the Electric Vehicle project, and the
Tamang Abono Program. Furthermore, these results do not include
several PAPs fnanced by Special Accounts that address mitigation,
which likely result in an underestimation of the share of climate
expenditures directed toward mitigation. Of note, 65 percent for
adaptation is actually on the low side compared with allocations by
other countries in the region, where the breakdown of funding is
7080% for adaptation and 2030% for mitigation (UNDP and
CDDE, 2012). With several major mitigation PAPs being expanded,
new opportunities present themselves for further scaling up adapta-
tion through the co-benefts of such PAPs. For example, a redesign
and improved targeting of the NGP can deliver its full carbon
sequestration potential while also making the participating poor
communities and their livelihoods more resilient to climate hazards.
Partial
PCF (50%)
BUB (530%)
Direct Spending by NGAs
(1070%)
None
PDAF
LDF (not applicable)
LDRRMF (not applicable)
REQUIRED
COST
SHARING
Non-restrictive
LDRRMF
LDF
PSF
Poverty-based
PDAF (Poor LGUs;
4
th
to 6
th
class)
BUB (609 poorest
municipalities)
Multiple Factors
PCF (Based on Performance
Assessment and poverty rate)
Direct Spending by
NGAs (Qualify if help
deliver sectoral priorities)
ELIGIBILITY
Adaptation and DRRM
LDRRMF
Adaptation Only
PSF
General Development
(including adaptation)
LDF
PCF
PDAF
BUB
Direct Spending by NGAs
PURPOSE
Figure 18. Key Characteristics of Local Sources of Climate Financing
48
Te shift toward adaptation is taking place in some of the
Departments, but is happening at varying rates, with the DOE
continuing to focus on mitigation consistent with its mandates
and the DENR and DA experiencing win-win opportunities
through adaptation and mitigation co-benefts. Te DPWH
accounts for about 72 percent of appropriations for adaptation,
followed by the DENR (15 percent), and the DA (12 percent).
(Figure 20). On the mitigation side, the DENR accounts for
nearly 75 percent of mitiga-
tion appropriations followed
by DOE (15 percent) and the
DA (10 percent) (Figure 21).
About 13 percent of DENRs
climate appropriations in 2012
target measures that include
both adaptation and mitigation
benefts. For instance, strength-
ening the adaptive capacity of
forests also allows for terrestrial
carbon sequestration. It also ofers signifcant development co-ben-
efts through protected area management, soil conservation, and
watershed management. Similarly, the DA also manages projects
that have adaptation and mitigation co-benefts (e.g., mangrove
planting or PhilRices project to develop mitigation and adaptation
technologies and strategies).
Nearly all climate appropriations under the DPWH envelope
are directed to providing adaptation benefts, and are almost
entirely aimed at food control protection projects. Budgetary
allocations to food control protection increased by 124 per-
cent in real terms, from Php 7.5 billion in 2008 to Php 20.2
billion in 2013.
Te DENR is very clearly focusing on mitigation, as appropri-
ations in this area have increased by 380 percent in real terms,
from Php 1 billion in 2008 to almost Php 7 billion in 2013,
mostly directed toward the NGP. Discussions with the DENR
show that, in recent years, climate variability has been taken
into greater account in the choice of locations for planting or
research than before, so some adaptation is considered. Still,
only about a third of appropriations have direct adaptation
co-benefts. Well-designed forestry programs can provide
signifcant adaptation as well as carbon sequestration benefts;
however the design and the targeting of the NGP have not fo-
cused on these, limiting its potential to deliver climate results.
About three-quarters of the DAs total climate appropria-
tions is for adaptation, composed primarily of funding for
PhilRice, the Tamang Abono program, and for a range of
small-scale projects related to organic and conservation agri-
culture. Tough these projects main purpose is to enhance
production resilience, they also provide signifcant mitigation
co-benefts, which explains the increase under mitigation.
DOSTs small-scale attached Agencies
15
mainly support
adaptation activities, with most of the budget going for
PAGASAs weather, food forecasting, and research services.
Tis represents about six percent of the total climate ap-
propriations for adaptation. PAGASAs funding makes an
important contribution to building adaptation and disaster
risk prevention capacity (notably related to understanding
and monitoring hazards, i.e., hazard identifcation, mapping,
and forecasting). Eforts to prioritize more resources to such
ex ante disaster investments have been called for, but the level
of funding remains very modest.
16

Te spike in the DOEs climate appropriations envelope from
Php 157 million in 2008 to Php 3.8 billion in 2013 is driven
by the Philippine energy efciency project since 2010 and the
new Electric Vehicle Project (replacing petrol-fuelled tricycles
with electric models), which is included in the 2013 budget.
Actual spending could be signifcantly higher, due to the
Departments high reliance on SPFs.
17
Despite its clear focus
on mitigation (given its mandate), the DOE recognizes the
importance of adapting energy systems to climatic changes,
but these activities are more difcult to identify in the budget
and remains at an initial stage.
18
It is noteworthy that adap-
tation-related investments is suggested to be primarily funded
15
PAGASA, Philippine Council for Industry and Energy Research and Development
(PCIEERD), Philippine Council for Agriculture, Aquatic, and Natural Resources
Research and Development (PCAARRD), and Philippine Council for Health Research
and Development (PCHRD).
16
Te recent DRR study that reviewed DRR budget allocations in the national budget
concluded that funding for understanding hazards (mainly funded by PAGASA and
NAMRIA) accounted for Php 1 billion in 2010 (less than 5 percent of the total DRR
budget) (Understanding Existing Methodologies for Allocating and Tracking National
Government Budget for Disaster Risk Reduction (DRR) in the Philippines, 2012).
17
See section below on special purpose funds for more details.
18
DOE considers programs that address the countrys self-sufciency needs in energy
(promotion of energy efciency or further exploring renewable energy potentials) an a
daptation intervention. Te CPEIR methodology considered a program to have adapta-
tion co-benefts if it takes into account climate change aspects in planning and design of
the energy supply, demand side management to respond to climate change by reducing
energy consumption, or increasing energy efciency and climate-related regulatory
support aimed at improving energy efciency such as norms, building codes, etc.
Figure 19. Climate Appropriations by PAPs Addressing
Adaptation, Mitigation, or Both 2008-2013 (in %)
1
Source: DBM, DA, DOST [PCIEERD, PCAARD, PCHRD]
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP
Flood control pro-
tection accounts for
about three-fourths
of the appropriation
directed at climate
adaptation.
49
by the National Grid Cooperation or other private electricity
corporations, including the strengthening of power trans-
missions and distribution systems, the laying of underground
cables for power distribution systems, or the protection of
energy facilities along coastal defense walls.
Convergence of the Climate
Change Adaptation and
Disaster Risk Reduction
and Management agendas
is not refected in budgets
and plans
In line with the paradigmatic shift toward disaster prevention,
the NDRRM Act introduced changes in the allocation crite-
ria. Te NDRRM Act revamped both the National and Local
Calamity Funds, creating the National Disaster Risk Reduction
and Management Fund (NDRRMF) and the Local Disaster
Risk Reduction and Management Fund (LDRRMF) from which
70 percent of the amounts appropriated should go to disaster
prevention activities, with the remaining 30 percent to support the
Quick Release Funds for relief and recovery programs. While the
NDRRMF is funded annually
in the GAA, LGUs are required
to appropriate 5 percent of their
regular General income for the
LDRRMF. Between 2008 and
2012 the total resources direct-
ed to the LDRRMF rose from
Php 11.5 billion to Php 15.8
billion. Unutilized LDRRMF
resources accrue to a special
trust fund to address DRRM
issues for fve years, after which
they revert back to the General
Fund. Te new provisions allow
Departments and LGUs to
better address emergencies and hazards by mitigating their efects
and preparing communities for future climate-related disasters, as
well as strengthening communication and early warning devices.
At the national level, despite increased funding of the
national Calamity Fund in recent years, most of the resources
continue to be directed to response, recovery, and rehabil-
itation eforts. Trough 2013, the GAA has not included any
appropriations for the NDRRMF. Instead, appropriations have
continued for disaster relief, recovery, and reconstruction through
the Calamity Fund.
19
Te Calamity Fund can support disaster
prevention activities, but has rarely done so over the past years.
Tis can be explained in part by increased funding needs for
post-disaster activities, refected in increased budgetary alloca-
tions for the Calamity Fund from Php 5 billion in 2011 to Php
7.5 billion in 2012 and 2013.
Te DBM is of the opinion that disaster prevention should be
funded as part of the regular budgets of the Departments to
reduce implementation delays, but has yet to develop systems
to incentivize climate change adaptation and disaster pre-
vention actions by Departments. According to DBM, funding
disaster prevention under the Departments regular budgets
would better facilitate the execution of cost-intensive investments,
such as seawalls, which are not undertaken normally under SPFs.
Operationally, funding disaster prevention measures out of the
NDRRMF, a special-purpose lump sum fund, would entail
Departments submitting proposals for funding to DBM, followed
by an evaluation and approval of such proposals during the budget
year. Te need to evaluate individual proposals would likely delay
implementation of these activities. However, the current arrange-
ment does not allow the DBM to incentivize Departments in un-
dertaking disaster prevention activities from the resources that are
to be set aside for such activities under the NDRRMF. Systems to
19
Te Calamity Fund can be used to fund relief, reconstruction, and rehabilitation activi-
ties (including pre-disaster activities such as preparation of relocation sites, and disaster
management training) related to the occurrence of natural calamities, epidemics, crises
resulting from armed conficts, and other catastrophes.
Figure 20. Climate Appropriations for PAPs Contributing
to Adaptation only by Department, 2008-2013, (in %)
1
Source: DBM, DA, DOST [PCIEERD, PCAARD, PCHRD]
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP.
Figure 21. Climate Appropriations for PAPs Contributing to
Mitigation only by Department, 20082013, (in %)
1
Source: DBM, DA, DOST [PCIEERD, PCAARD, PCHRD]
1
The DAs 2008 and 2013 budget fgures are excluded, 20092011 fgures are based on
GAA Budget, 2012 fgures are proposed NEP. For all other Departments, 20082012
fgures are based on GAA Budget, 2013 fgures are proposed NEP.
Despite success-
ful convergence of
the climate adap-
tation and disaster
risk reduction and
management policy
agendas, funding is
still directed primarily
toward recovery and
rehabilitation.
50
improve monitoring and tracking of such expenditure in Depart-
ment budgets could begin to address the current shortcomings.
Further, the funds disbursement process of the Calamity Fund is
cumbersome, resulting in long delays. As a result, Agencies have
been more hesitant to apply for funds. Similar procedures under
the NDRRMF could afect incentives to apply for funds.
Tracking the utilization of climate resources at the local level
is difcult, and evidence indicates that funding is still chan-
neled toward recovery and rehabilitation. While the NDRRM
Act focuses on the transparent utilization of disaster funds,
requiring monthly reporting from the Departments, a challenge
remains in the physical verifcation of the funded activities.
Guidelines have been issued by the DILG and NDRRMC on the
use of resources earmarked under the LDRRMFs, with a long list
of eligible equipment, goods, and services. However, it is difcult
to track the utilization of LDRRMFs resources given the pur-
chase of relief goods reported as Maintenance & Other Operating
Expenditures. Additionally, the LDRRMF is of budget, making
activities more difcult to track. However, signifcant funding for
prevention was channelled through the Performance Challenge
Fund, where 395 LGUs were able to access Php 524 million to
fund a total of 629 projects related to CCA and DRRM.
Some LGUs have raised concerns about the LDRRMF as an
infringement on their autonomy. While some LGUs consider
the LDRRMF resources essential for their disaster preparation and
welcome the setup of a fund to protect the use of the resources,
20

other LGUs are less prepared to make efective use of the resources
for disaster preparedness. Te use of the LDRRM funds at the
local level is being questioned by some LGUs, which consider the
preset use of the funds as an infringement on their autonomy.
Available planning and
design tools are often
not mainstreamed or are
overly complex
Most tools in use in the Phil-
ippines need to be improved
and made more accessible,
while other tools still need
to be developed and oper-
ationalized. Te planning
and prioritization processes
in Departments already have
a variety of tools to support decision making on climate change
activities, including climate vulnerability and disaster risk
20
In the past, these resources had been set aside on an annual basis and frequently were
used at the end of the fscal year for other purposes, such as Christmas bonuses
assessments, environmental impact assessments, and climate
screening tools, but these tools are often too technical to be useful
to Department staf.
Vulnerability assessments (VAs) are used for diferent purpos-
es at diferent geographic scales, but are often too technical
and use fragmented approaches. VAs are the frst step in under-
standing the impacts of climate change. In the Philippines, VA
tools are being developed sporadically, with much of the current
practice focused on disaster-related risks. All of the available
instruments, including guidelines from IPCC, the Disaster Risk
Exposure and Assessment for Mitigation tool, climate-proofng
instruments developed by the University of the Philippines, and
tools being developed by local scientists for DAs Climate Field
Schools, have been reported to be too technical for use by Agency
technical personnel. Tis calls for a review to assess how these
instruments can be simplifed and potentially better streamlined.
While standardization is not essential, a common VA frame-
work would be useful in prioritizing climate action. Tere are
no universally accepted approaches to VAs because of variations in
thresholds, tipping points and hotspots, diversity in local knowl-
edge and adaptability, and diferences in time and space scales at
which the climate change processes operate. Nevertheless, policy
coherence and efective use of fnancial resources, avoidance of
duplication, and unnecessary competition among VA tools are
at stake. Tese could be achieved only if a common framework
is used. Such a framework might include a comprehensive set of
physical indicators of climate vulnerability, identifcation of target
vulnerable groups that are a priority for adaptation policy, a map-
ping of the pathways of present vulnerability, and how these
might change in the future (using PAGASA scenarios).
Te climate-screening tool, which is being developed by
the DENR, provides upfront assessment of PAPs to identify
design changes needed to account for climate change risks
and opportunities.
21
Its use can improve the ability of project
managers to understand and integrate climate change factors into
project planning, particularly at the early stages of project prepa-
ration. Te screening process assesses the vulnerability of a project
concept to climate change. In particular, it provides information
on climate-related risks on specifc sectors or project activities. Te
tools application should guide project manager decision making
about the need to incorporate climate-change-related factors in the
design of their projects, the appropriate level of efort to be used
to address these concerns and tools available for supporting the
choice among adaptation options. At present, implementation of
the tool is not yet well applied, calling for scaling-up.
21
Tis is diferent from the Climate Screening Guidelines piloted by the CCC and adopted
by the DBM in 2014 budget call which is focused on tagging PAPs in the budget.
Tools to support
planning and prioriti-
zation are often not
mainstreamed and
too complex to use.
51
Te Philippines already has a comprehensive framework in
place that mainstreams climate change impacts into existing
Environmental Impact Assessments (EIA), but the processes
are reported to have technical shortcomings and experience
time delays, limiting efectiveness. Te mainstreaming efort
does not imply a separate and
added layer of data and work
requirements over and above
the existing procedure, but is
merely designed to enhance
and improve analyses of
adaptive capabilities of the
project visavis the environ-
ment in which it will function.
Technical shortcomings
include the poor quality of
many EIA reports, the limited
utility of generic mitigation
and management measures,
and the relevance of reports
for decision-making. Te EIA
is often undertaken downstream of the decision-making process.
Efectiveness is further limited by complicated procedures, in-
cluding inconsistencies in interpretations at various levels, lack of
EIA professionals steeped in CCA/DRR, localization of the EIA
process, and monitoring of compliance.
Tough the climate agenda includes provisions that vulnera-
ble population groups and communities should be included in
the consideration of climate PAPs, there is currently no tool
accessible to help identify their specifc needs. Te NCCAP
envisions building up the adaptive capacity of women and men
in their communities guided by the principles that adaptation
measures should be based on equity and in accordance with
diferentiated responsibility, and accord special attention for the
protection of the poor, women, children, and other vulnerable
groups. Tools to include poverty and social assessments in the
design of PAPs have been used in a wide range of areas that assess
the impacts of policies and programs on targeted segments of the
population, including the poor, women, and socially vulnerable
groups. Given the poverty levels and signifcant vulnerability of
many poor groups in the Philippines, there is a need to ensure
the availability of tools that assess such issues when planning and
prioritizing for the climate agenda.
Public fnance reforms
provide opportunities
to improve planning,
prioritization, execution,
and monitoring of
climate PAPs
Te inconsistency across national climate plans, sector strate-
gies, and local development plans hampers the mainstreaming
of climate PAPs in the budget. In recent years, there have been
increasing eforts by the Government to integrate adaptation- and
mitigation-related issues into planning tools (such as the PDP, NC-
CAP, sector strategies and plans, CDPs and CLUPs) at national
and subnational levels. At the level of policies, plans, and strategies,
climate change priorities have been mainstreamed in several of the
PDPs core chapters, and a range of sector strategies and plans have
been or are currently being updated by including climate change
considerations However, despite a range of planning tools and
climate-friendly strategies and plans, challenges remain at the na-
tional and subnational level to ensure climate actions are prepared
for and prioritized in budget planning. Te NCCAP provides the
strategic framework for governments climate action prioritization,
but it has not been used by Agencies to feed into the Departments
budget planning and resource allocation. A main challenge for
the Departments and Agencies remains the use of the NCCAP to
integrate climate change concerns into their sector plans and iden-
tify activities for their respective budgets. Recognizing the need to
make the NCCAP a more operational tool for the Departments,
the CCC launched a series of initiatives in 2012 to update the doc-
ument, including a review of the alignment between the NCCAP
priorities and the budget, and the preparation of a results-based
monitoring framework to allow better identifcation and tracking
of the NCCAP activities.
Te budget serves as the instrument by which resources are
allocated to PAPs, with the budget process providing entry
points for mobilizing fnance for climate action. Given fscal
constraints and competing development priorities, it has been a
challenge for the government to mobilize additional resources for
climate change activities. It is therefore important to understand
the budgeting process and allocation of resources among Depart-
ments to examine constraints and opportunities to fnance cli-
mate PAPs. Trough its four phasesbudget preparation; budget
legislation; budget execution; budget accountabilitythe budget
process ofers several entry points for integrating the climate
agenda (Figure 22).
Environmental
Impact Assessments
are often carried out
late in the project
approval process,
after signifcant
expenditures have
been incurred, and
provide limited
space for redesign-
ing the PAP.
52
CCC has recently defned Screen-
ing Guidelines for identifying PAPs
that support the NCCAP and DBM
is integrating this into the budget
process to make Departments
more responsive to NCCAP
Venue for the DBM to include
CCCs technical advice in
evaluating requests for fnding
of PAPs above the ceiling with
a climate lens
Secondary
tagging of
climate PAPs
will facilitate
tracking of
spending
with CCA and
mitigation
co-benefts
Ongoing
initiatives
to improve
performance
indicators for
each of MFOs
in the OPIF of
Departments
and Agencies
Figure 22. The Philippine Budget Cycle: Examples of Entry Points for Integrating the Climate Agenda
Source: DBM
Costing of
NCCAP priority
programs and
activities and
inclusionin
sector MTEFs
will enhance
ability of sector
Agencies to
access resourc-
es available in
medium term
fscal program
53
While climate screening guidelines do serve to facilitate the
inclusion of climate action in budget planning at national
and subnational levels, prioritization requires additional tools
and decision support processes. Te recently developed climate
screening guidelines focus primarily on identifying climate PAPs,
the tool cannot yet be used for
prioritizing PAPs. In addition
to a database of geographic and
sector vulnerability, prioritiza-
tion requires a decision support
system that translates NCCAP
priorities into fundable activ-
ities, the adoption of targets
that are to be achieved, indicators to measure these targets, and
a decision support process that accounts for the multiple benefts
that result from climate action and the cost of inaction, recog-
nizing the inherent uncertainties surrounding potential climate
impacts and the benefts of actions taken (Box 2).
On the whole, it seems that most Departments and LGUs have
not yet made use of internal policies, budget calls, direc-
tives, or memorandums to promote the identifcation and
budgeting of priority climate activities or to integrate climate
risk considerations in infrastructure vulnerable to weather
extremes. For instance, only DENR and DPWH have adopted a
Medium Term Expenditure Framework (MTEF) in their internal
planning and budgeting. Te Fiscal Planning Bureau is planning
to standardize the develop-
ment of MTEFs and roll this
out for use by departments.
Likewise, other potential
entry points at the level of
investment appraisal have not
yet been fully explored, such
as the integration of climate
considerations in the ICCs
investment appraisal criteria.
Te application of a climate
lens to infrastructure stan-
dards or building codes is also
still at an initial stage, and will
require careful selection of investment PAPs due to its possible
high budget implications.
Well-intentioned Government programs designed for one
purpose can have perverse efects with unintended conse-
quences, inadvertently increasing vulnerability or increas-
ing carbon emissions. Te Philippines Government does not
provide a subsidy for fossil fuel consumption in the form of low,
regulated prices or tax levels. While environmental taxes on
fossil fuel energy consumption are currently under discussion,
the price signals from the market are strong as the country has
the second-highest energy costs in Asia after Japan. Tese costs
should incentivize companies and households to undertake energy
Box 2. Secondary Tagging:
Lessons from Ugandas Virtual Poverty Fund
Virtual Poverty Fund (VPF). VPF uses the existing budget
classifcation system for tagging and tracking the perfor-
mance of specifc poverty-reduction expenditure in the
budget. A number of budget codes are identifed that label a
portion of government expenditures as poverty-reducing. In
principle, a well-designed VPF would allow for (1) maintaining
the integrity of budget management and systemic reforms,
(2) adapting the existing budget classifcation system to tag
pro-poor programs (hence virtual poverty fund), (3) linking
specifc (e.g., HIPC) resources to these budget allocations, (4)
protecting budget disbursements to these programs, and (5)
monitoring of performance of these expenditures.
Ugandas Experience with its VPF. In response to the need
to ensure budget expenditures are oriented toward poverty
reduction, the Government of Uganda introduced the Poverty
Action Fund (PAF) in 1998. The setup of the PAF was simple
and did not require additional institutional arrangements. The
PAF has been successful in (1) re-orienting Ugandas budget
allocations toward pro-poor service delivery by ensuring
additional resources were channeled to specifc priority
programs of Ugandas Poverty Eradication Action Plan (as
a result, allocation to PAF programs increased rapidly, with
the main benefciary being local governments); (2) mobilizing
development partner resources and harmonizing conditions
by organizing more sector-specifc development partner
resources and supporting development partners shift from
project to budget support; and (3) improving budget predict-
ability, transparency, and accountability.
Some Key Lessons. The PAF experience in Uganda has
demonstrated a number of key lessons on how to establish
VPFs as mechanisms for tracking and monitoring poverty
reducing expenditures: A VPF should be simple, regarded as
a mechanism to identify priority expenditures in the budget
classifcation system in alignment with the Poverty Reduction
Strategy Paper. The defnition of the programs included in the
VPF should be reviewed regularly. Tracking of performance of
the expenditures should be within a transparent budget-wide
reporting and review system. A VPF should also support
rather than replace the implementation of a countrys public
expenditures management reforms. A key element of VPFs,
the protection of VPF expenditures, should be linked to a sys-
tem of controlling overspending in other parts of the budget
to limit the shocks to unprotected sectors.
Source: T Williamson and S. Canagarajah. Is there a place for vir-
tual poverty funds in pro-poor public spending reforms? Lessons
from Ugandas PAF 2003
Prioritization tools
need to be devel-
oped to supplement
screening guidelines.
Only a few Depart-
ments and Local
Government Units
experiment with and
use screening and
other budget tools
to facilitate main-
streaming of climate
change in budget
planning.
54
efciency and conservation eforts. However a number of direct
or indirect subsidies incentivize increasing vulnerability or reduce
sequestration of carbon, such as those that promote the location
of infrastructure or people in higher risk areas or those that en-
courage land conversion from forest and watershed to other uses,
as well as those that encourage conversion of prime agricultural
land to commercial, residential, and industrial uses.
Innovative budgeting tools
introduced through the
PFM reforms will enhance
planning and prioritization,
as well as signifcantly
advance convergence
Te adoption of new budgeting tools such as the Program Ap-
proach and the Bottom-Up Budgeting approach ofers unique
opportunities to enhance climate outcomes, increase conver-
gence, reduce duplications, and leverage additional resources.
In an efort to strengthen
the refection of policies and
priorities in the budget as laid
out in the social contract and
the fve KRAs, the Government
introduced a number of budget
procedures, such as the adop-
tion of the Program Approach
and the Bottom-Up Budgeting
approach, to promote the focus
on critical program targets
underlying the fve KRAs and
to converge with the develop-
ment needs of poor/focus cities
and municipalities. Given the
multi-sectoral nature of climate
change, these budget procedures provide opportunities to enhance
the efectiveness of NCCAP implementation and mainstream cli-
mate change considerations in bottom-up planning approaches.
Te Program Approach ofers a unique opportunity for the
Philippines Climate Change Agenda to bring about con-
vergence and greater coordination in the related activities
of several Departments, thereby helping to enhance the
efectiveness of the selected programs, reduce duplication
of interventions, and leverage additional resources from the
Departments budgets. To support the accomplishment of the
key performance targets under the fve KRAs, the Government
committed to use its fscal space or uncommitted resources for
the fve key programs managed by each of the Clusters based on
a holistic program approach. For the CCCC, all eight Depart-
ments contributing to the Climate cluster were asked to identify
their main activities that contribute to the Clusters key program,
managing risk of communities within the 18 major river basins
vulnerable to critical geological and hydro meteorological hazards
through enhancing local adaptive capacity and strengthening nat-
ural ecosystems resilience to climate change and disasters.22 Te
total appropriations for this program amount to Php 13.6 billion,
with the bulk of the funding coming from DENR (Php 9 billion,
of which 73 percent of the funds are allocated to watershed and
river basin management activities, 17 percent to Namiras large-
scale topographic base mapping, and the remaining 10 percent to
various other items). However, the efectiveness of this approach
will depend on the Governments ability to address some emerg-
ing problems, including:
a. Te need for increased consultations between the DBM
and the CCC when implementing the Program Approach.
Lacking consultations early on often requires changes in the
scope of the program later on in the process, and thereby
slows down program implementation.
b. Te improvement of coordination, planning, and
implementation, which has been difcult as the
approach involves eight Departments and more than
nine attached Agencies.
c. Adequate technical capacity of staf, which is critical for
tasks such as the identifcation of appropriate targets and
indicators, and subsequent monitoring of them, which
varies and is often lacking.
d. Te limited incentives that Departments have to coordi-
nate among each other in formulating and executing the
Program Approach.
While the Program Approach was established as a frst step
to draw on uncommitted resources or leveraging additional
funds from existing budgets of the agencies, such potential for
resource mobilization has not yet been fully exploited. To this
point, the DA and the CCC have benefted mainly from increased
budget appropriations. However, the Program Approach has not
yet resulted in leveraging reallocations (towards the program)
from existing budgets of agencies. Incentives and arrangements
are yet not in place to allow the program to attract additional
funding from any fscal space or reallocations.
BUB ofers an opportunity for local communities to better
plan and prioritize their activities, as well as to increase
collaboration with CSOs. Te programmed appropriation for
all BUB projects in 2013 was Php 8 billion. Te approach is being
piloted by the Human Development and Poverty Reduction
Cluster and the Good Governance Corruption Cluster to respond
to the development needs of poor municipalities and move toward
22
Te participating Departments are DA, DENR, DILG, DND, DOH, DOST, DPWH,
and MMDA, and nine Agencies attached to them.
The Governments
2011 PFM reforms,
particularly the
Program Approach
and Bottom-Up
Budgeting, can
reinforce and boost
efectiveness in the
implementation
of climate action.
55
satisfying the Governments goal to reduce poverty from 26.5
percent in 2009 to 16.6 percent by 2015. Under the approach,
595 poor municipalities, including several cities with high poverty
concentration, prepare their Local Poverty Reduction Action Plan
in a participatory manner with the help of CSOs, of which 61
partnerships have been formed so far. Te major output of this
planning exercise is the identifcation of projects from a menu of
programs that are already being undertaken by selected Agen-
cies, and for which target LGUs want to secure funding from
said Agencies. Te participating Agencies under the BUB (DA,
DENR, DOE, and DOH, among others) were asked to earmark
10 percent of their total budget, on a notional basis, for programs
and projects for the funding requests of the target LGUs, but only
DA reached this limit.
While the BUB approach is also laudable, the details of the
design and implementation are under review based on recent
experience. Te BUB Executive Committee is the approving
authority for the Local Poverty Reduction Action Plans. Com-
munities have submitted about 1,500 draft proposals pertaining
to environment and natural resources directly to the DENR.
Te lack of adequate guidelines for selecting the projects and the
specifc role that RDCs can or should play in the selection process
are the main issues that remain unresolved. To increase the ef-
fectiveness of the BUB, the Government may want to strengthen
the linkages between poverty and CCA and mitigation in project
selection and review.
Increased budget
transparency facilitates
mobilization of domestic
and development partner
resources for climate action
Transparency in the mobilization and use of climate resources
is essential for increasing the efciency of resource utilization
and for attracting additional new resources. A key part of such
transparency is clear and agreed-upon defnitions and criteria for
what constitutes climate expenditures, with public access to infor-
mation. Accountability and transparency can also be increased by
using the national panel of technical experts in the processes of
project appraisal, monitoring, and evaluation.
Te fragmentation of resources often results in piecemeal
approaches with higher transaction costs and lower efective-
ness. Climate action has been funded mainly from the GAA,
from external sources, or through internal resource mobilization
by the LGUs, often on a project-specifc basis. Te creation of the
PSF and the ability of the CCC to directly mobilize a specifc pot
of resources provide new additional, innovative, and dedicated
sources of fnancing. However, the further fragmentation of
resources could result in piecemeal approaches if systems are
not put in place to plan, coordinate, and assess across fnancing
sources. Another possible risk is double dipping, in which local
project proponents successfully avail of diferent, uncoordinated
funding windows for the same programs. A key in making new
funds more efective is improved access at low transaction costs.
Some of the policy barriers that need to be addressed by the PSF
Board include the complexity of climate scenarios, transaction
costs to comply with bureaucratic requirements, and widespread
support for high-carbon alternatives. Tere are also limitations of
the LGU support capacity as well as the limited capacity of local
implementers.
Tere remains an important institutional gap in coordinating
the mobilization of additional resources to support national
programs and in devising appropriate fnancing instruments
to reduce fragmentation. While the PSF Board is focused on lo-
cal adaptation fnancing, no such institution exists for addressing
climate fnancing at the national and sectoral level. Conceptually,
the CFG could be constituted as a powerful group for carrying
out such a task, but it remains informal group. Tis shortcoming
can be addressed by either augmenting the role of the PSFB or by
providing some legal basis for the CFG to undertake this role.
Development partners funding plays an important role in
global knowledge transfer, piloting new initiatives, and sup-
porting investments to assist the Government in developing
climate action at the central and local levels. More than 10
development partners support the Philippine Climate Change
Agenda, including the United Nations Development Program, the
Asian Development Bank,
the World Bank, the Japan
International
Corporation Agency, the
Australian Agency for Inter-
national Development, Euro-
peaid, the French Develop-
ment Agency, GIZ, the U.S.
Agency for International De-
velopment, and the British
Embassy. Most development
partner-supported initiatives
have focused on climate-re-
lated disasters and disaster
recovery interventions in the
infrastructure, energy, and
environment sector, with a
particular focus on capacity
building, policy advocacy,
and awareness-raising and technology adoption, notably at the local
level. Development partner funding has been, and remains, an
important source of fnancing for food control under DPWH.
Development Part-
ner support plays an
important role in
sharing and generat-
ing knowledge, and
in dedicating addi-
tional resources to
support investments
and capacity devel-
opment that can
boost climate action
at the central and
local levels.
56
Te Climate Change Working Group of the Philippine De-
velopment Forum (PDF) provides a venue for development
partners to share information, developments, and priorities,
but has not yet led to signifcant strategic harmonization. Te
Climate Change Working Group of the PDF meets quarterly,
primarily to share information. While the working group has not
developed a coordinated program of support, eforts are underway
to develop a joint CCA and DRRM working group in line with
the policy convergence on this issue.
Existing monitoring and
evaluation systems have
cumbersome reporting
requirements, and the lack
of climate indicators limits
their usefulness to support
the Governments climate
reform agenda
Monitoring and reporting on NCCAP implementation prog-
ress has been challenging, as systems are not in place to col-
lect and integrate results from various National Government
Agencies. Te NCCAP assigns the CCC overall responsibility
for monitoring, reporting, and evaluating the progress of the NC-
CAP implementation. Te results framework includes a detailed
structured articulation of the
overall vision, intermediate and
immediate outcomes, and a list
of priority activities that are to
be carried out during the three
six-year phases of the NCCAP.
It also assigns the specifc
responsibility of leading and
supporting each of the listed
activities to specifc Agencies.
It does not, however, specify
how the progress of implemen-
tation on specifc tasks is to
be monitored and where the
responsibility for monitoring
lies. While Departments and Agencies do report on the PAPs that
they are implementing, they do not necessarily collect or provide
information on their climate results. Further, there are no guide-
lines to ensure that the collected information can be aggregated
across the PAPs to provide higher-level results.
M&E systems are indispensable for evaluating the performance
of climate PAPs with respect to their objectives, to test the
accuracy of ex ante projections of climate vulnerabilities or
projects impacts on the respective vulnerabilities, and to incor-
porate lessons learned about the adoption and mainstreaming
of new and efective adaptation and mitigation interventions.
Te monitoring and evaluation of climate PAPs in Departments is
sporadic and has been primarily focused on mitigation. Te DOE
has long been monitoring the supply and utilization of biofuels.
Along with the DENR, it is involved in GHG accounting and
monitoring. Tere is little evidence of any Departments setting
adequate adaptation outcomes or any processes for evaluating the
efectiveness of their plans, policies, and programs.
A lack of agreed-upon indicators and targets has hindered the
progress of implementing the NCCAP. Tough the NCCAP
provides a detailed results matrix including outcomes, outputs,
activities, and outputs indicators, systems have not been put in
place to adapt existing systems to monitor based on these indica-
tors. Te CCC requires Agencies to submit through the CCCC
their existing climate change related activities and programs. Te
NCCAP does not include agreed-upon indicators and targets
for reporting to the CCCC on Departmental climate PAPs to
measure against climate results. Tus, there is no mechanism to
aggregate these submissions across Departments to report on a
consolidated progress report. While LGUs are required to submit
their LCCAPs to the CCC, no systems are in place to receive,
monitor, or review them. As a result, the CCC accomplishments
report provides a narrative highlighting signifcant achievements
on climate change, but does not report against the NCCAP
results matrix. Specifcally, it lacks basic information essential
for assessing efectiveness of the overall program, including the
resources that are directed to the NCCAP objectives and outputs
and the results that they have delivered.
Establishing targets for the NCCAP indicators and aligning
them with established Departmental Goals and outputs, such
as in the OPIF, would provide greater incentive for NCCAP
implementation. Department incentives to undertake activities
that support NCCAP outcomes depend strongly on the degree
of alignment between the Departmental goals and the NCCAP
goals, and on the incentives that Departments have established for
meeting their performance goals. While eforts have been made
to enact some reforms included in the NCCAP, many others have
yet to begin or are at the initial stages of discussion. Other outputs
are in confict or overlap with existing mandates, hindering their
implementation. Te adoption of OPIF has shifted the focus of
M&E systems away from inputs or activities to MFOs delivered to
clients.23 None of the Departments have climate-related MFOsl;
however, the DAs OPIF logical framework includes increasing
23
Trough OPIF, DBM seeks to focus on three key outcomes: fscal disciplineliving
within the means or resources available to the government; allocation efciency
spending money on the right priorities; and operational efciencyobtaining the best
value for the money or resources available.
Monitoring and
evaluation systems
are needed to
ensure efciency
and increase the
accountability and
transparency of
institutions imple-
menting climate
change activities.
57
climate resilience as one of its
goals. While this supports the
integration of climate change
activities in the DAs programs,
the absence of an MFO on
climate limits its efectiveness.
Te DENR and DPWH are
reviewing their OPIF logical
frameworks. Te lack of capaci-
ty to develop appropriate quan-
tifable indicators has limited
the extent to which climate change is incorporated in OPIF. Te
creation of climate units in DENR and the DA may provide some
capacity to develop M&E indicators.
Department M&E systems are overburdened by reporting
requirements, afecting managers ability to use reports for
planning purposes. An assessment of practices and their implica-
tions for the M&E of climate PAPs of two Departments (DENR
and DA) showed a number of challenges afecting planning,
monitoring, and evaluation of all Departments PAPs, including
the climate PAPs. During the fscal year, DENR and DA have to
comply with many reporting requirements and respond to ad hoc
requests from oversight Agencies. According to DA, its M&E unit
prepares one to four reports on a daily basis. Regional ofces often
fail to submit timely fnancial and physical information, which in
turn afects the quality of mid-year reporting (notably the monthly
and quarterly reports). As a result, the Departments senior man-
agement is unable to use the information for its strategic resource
allocation planning, which in turn afects planning and funding of
climate PAPs. Te assessments further fndings include:
Te most important PAPs of DENR are climate-related PAPs
(notably the NGP) that are captured through DENRs M&E
system; eforts to closely monitor this presidential program
have resulted in the creation of a separate information sys-
tem, raising questions about DENRs efective management
of two separate reporting systems.
Eforts have been made by DENR to introduce results-based
monitoring and to develop performance indicators, but the
Department has not yet been able to fully capitalize on this.
In 2011, DENR began to roll out on a pilot basis a re-
sults-based M&E system (with the Operation Manual devel-
oped with help of the WB). While the system is being rolled
out to the regions, a current challenge is the lack of trained
staf on M&E validations, survey mapping, and planning.
Challenges in establishing a joint database at the regional and
provincial levels can afect the monitoring of climate PAPs
in the future. Similarly, diferent information systems at the
regional and provincial levels afect DAs ability to monitor PAPs.
While some lessons could be learned from the WB-funded rice
program implemented in Milano, in terms of providing incentives
to subnational governments in setting up a joint database, this
approach has not yet been pursued. A few initiatives refect eforts
by DAs staf to introduce impact evaluations, but these have
remained one-time eforts. Te last comprehensive impact assess-
ment of DAs programs dates was undertaken in 1997. Since then,
the Planning and Monitoring Unit has faced staf and resource
shortages that have hindered its ability to conduct thorough
impact evaluations.
Te new Results-Based Performance Management System
(RBPMS) could provide a powerful opportunity to incor-
porate climate change indicators to monitor progress on the
climate change agenda. Te Government is introducing a unifed
and integrated Results-Based Performance Management System
across all Departments and agencies within the Executive Branch,
with expected improvements in reporting and auditing systems.
Tis system will enhance the mid-year and year-end M&E of cli-
mate PAPs. With a goal of strengthening the overall M&E system,
the President created an inter-agency task force (AO25) to align,
unify, streamline and simplify all existing monitoring and report-
ing requirements in government agencies relative to the National
Leaderships Agenda, the PDP 20112016, agency mandates,
commitments, and targets. Te RBPMS uses the fve KRAs set by
the President, the OPIF of the DBM, and the PDP-Results Matrix
of the NEDA as underlying frameworks. Te RBPMS will incor-
porate a common performance scorecard, and at the same time
create an accurate, accessible, and up-to-date government-wide,
sector, and organizational performance information system. For
FY 2012, the AO25 task force required each Agency to incorporate
a transparency seal that categorizes major programs along the
fve KRAs program/projects benefciaries, as identifed in the ap-
plicable special provisions, as well as the status of implementation
and program/project evaluation and/or assessment reports. Each
Agencys delivery unit should include it as a performance indicator.
One component of the RBPMS, the Performance Based Incentive
System, became operational in 2012. In FY 2013, Departments
will be expected to submit an improved set of performance targets
and indicators to satisfy the RBPMS.
At the local level, the Community-Based Monitoring Program
and the DILGs Local Government Performance Management
System (LGPMS) serve as starting points for developing a
systematic M&E system. An assessment of the horizontal M&E
systems (e.g., community-based monitoring system [CBMS] and
or LGPMS) and vertical M&E systems linking local level M&Es
to national levels (e.g., MDG monitoring by the NEDA) will
also be performed. Te CBMS, launched in 2002, serves as a
tool for local governance and complements the national poverty
monitoring system. Te CBMS also facilitates the implementa-
tion of targeted poverty reduction programs, with its household
and individual-level data as well as the M&E of these poverty
reduction programs. Te LGPMS is a self-assessment development
management tool for provinces, cities, and municipalities that
The lack of appro-
priate quantifable
indicators has limited
the extent to which
climate change is
incorporated into
OPIF.
58
provides information on the capacities and limitations of LGUs
in the delivery of essential public services. Its major output, called
the Annual State of Local Governance Report, provides strategic
information concerning LGU performance in governance along
the areas of administration, social services, economic develop-
ment, environmental management, and valuing the fundamentals
of governance. Both CBMS and LGPMS could be used both for
service convergence and for vertical coordination. Meanwhile, the
DILG has developed DRR/CCA protocols to issue an ISO-type
seal of disaster preparedness for high-performing LGUs.
Weak institutional
capacity, including limited
access to knowledge,
has hindered efcient
execution of the climate
reforms and action
Departments that implement the climate change agenda re-
quire knowledgeable and skilled staf in all aspects of climate
policy, fnancing, and institutions. Capacity building remains
signifcantly underfunded in the Department budgets, though it
is one of the NCCAP priorities. Departments largely do not have,
and are unable to recruit, experts to enhance their capacities on a
permanent basis due to a lack
of knowledgeable experts. As
discussed earlier, the CCC does
not have the capacity to engage
with all LGUs because of its
limited local presence. Further-
more, capacity is often limited
due to high staf turnover:
skilled middle-level technicians
are scarce, and often leave for
other Departments. While the
capacity to address climate
issues is inadequate, it is higher
in Departments where climate change is likely to afect many
policy objectives directly. Departments limited capacity in using
data for strategic planning purposes further afects their ability to
efectively monitor and evaluate their PAPs. Integrating climate
change concerns into the planning and design of DRRM projects
has also been difcult because of inadequate data and information.
Departments also do not have the tools necessary to prioritize and
sequence climate PAPs on the basis of their climate benefts, poten-
tially leading to foregone opportunities.
Understafng and a lack of capacity at the regional and na-
tional levels have contributed to weak and invalidated budget
reports. Delayed reporting and the many formal and ad-hoc re-
porting requirements have also weakened budget reports. Likewise
at the central level, the preparation of numerous reports does not
leave time for staf to verify and validate data. Furthermore, there
is insufcient software support and the planning unit lacks tools
to prioritize data assessment, and senior management does not use
the information for its strategic resource allocation planning,
Te capacity and knowledge base of LGUs to identify, design,
and carry out climate reforms remains low, as the informa-
tion available to LGUs to deal with localized climate risks
is generally lacking or not in an easy-to-use format. A recent
assessment of the technical capacity of LGUs to undertake climate
change adaptation interventions indicated key gaps. Specifcal-
ly, the LGUs lack knowledge and access to information about
climate change risks, biophysical features, climate impacts on key
economic sectors and ecosystems, adaptation options appropriate
to local conditions, and funding mechanisms that can support cli-
mate change adaptation at the local level (Regional Resource Cen-
tre for Asia and the Pacifc 2012). Downscaled climate projections
at the municipal level as well as climate trends covering 30 years
for LGUs respective areas of responsibility are necessary. More
context-specifc research data are also required on how projected
changes in climate parameters can afect major economic sectors
and ecosystems, such as farming, fshing, water resources, marine
resources, local biodiversity, infrastructure, and human health.
As at the Departmental level, there is a signifcant lack of stafng
capacity at the LGU level. Areas with gaps in capacity include the
ability for LGUs:
To design programs, develop indicators and targets, and
monitor and report these programs;
To incorporate vulnerability assessments into the CDPs,
CLUPs, and AIPs; and
Assist communities in identifying and preparing PAPs for
funding through the BUB, PSF, LDRRMF, and other
sources of funding.
Execution of the
policy agenda is
hampered by a
lack of institutional
capacity and
climate knowledge
at the national and
local level.
59
Knowledge gaps and the lack of a knowledge management
system have been key barriers for scaling up climate action in
Departments and LGUs. Knowledge and information gaps lead
to a lack of risk awareness, as well as discrepancies and uncer-
tainty about the robustness of plans and decisions. Te CCC
has developed a Philippine Research and Development Agenda
on Climate Change based on multi-stakeholder consultations.
Tis Agenda identifes the gaps and priorities in climate-relevant
research that could facilitate implementation of the NCCAP, and
is envisioned to serve as the guiding document for the countrys
research, science, and academic institutions. Te key challenge
at the local level has been the capacity to generate and capture
useful, actionable knowledge. Data collection methodologies are
not synchronized to support planning and budgeting of key pro-
grams and projects. In addition, mechanisms that allow consistent
updating and harmonization of raw data are not in place to share
such data among the relevant stakeholders, project developers,
and key policymakers. Comprehensive and accessible information
management systems necessary to ensure coordinated planning
and implementation across the many climate-relevant sectors are
not available. Te DENR, together with specialized agencies, is
responsible for setting up information collection systems that can
be used by other agencies in support for their own activities.
Insufcient information is a persistent issue across Depart-
ments and climate change stakeholders, and it is essential to
scale up the provision of information services by support-
ing agencies that provide these services and making their
information available more broadly. Examples of information
that is already available and in use include hazard maps (e.g., the
Philippine Institute for Volcanology and Seismology [PHI-
VOLCS], MGB) used in screening processes, and climate change
projections from PAGASA. Te main agencies that provide such
support include PAGASA, NAMRIA, DOST, PCAARRD,
Philippine Council for Industry and Energy Research and Devel-
opment, and the Klima Climate Center. In addition, data portals
such as the Southeast Asian Regional Center for Graduate Study
and Research in Agriculture provide valuable and highly relevant
information. In some cases, climate-related information generated
by academic institutions, specialized agencies, and civil society
organizations is not made available to outside users. Tis issue
has contributed to the lack of access to timely information that
has hindered Departments and LGUs from efectively integrating
climate action into their plans. Te generation of knowledge and
the ability to access key information and data are both essential in
ensuring successful implementation of NCCAP.
60
Carried out at the midterm of the current Administration, of
the Philippine Development Plan 20112016, and of the frst
six-year phase of the National Climate Change Action Plan,
the recommendations of this CPEIR aim to support the Gov-
ernments climate reform agenda. Te recommendations aim
to consolidate the strategic direction of the NCCAP and set the
stage for scaling up actions over the next two phases. Te goals for
the remainder of the Administrations term should be to:
i. Ensure that the enabling environment is frmly in place by
completing and implementing the remaining pieces of the
core climate change reforms;
ii. Formulate, enact, and support complementary sector and
local-level policy and institutional reforms;
iii. Enhance planning, prioritization, design, and reporting of
climate programs, activities, and projects to improve their
efectiveness; and
iv. Trough the above reforms, increase efciency of resource
use and provide support for higher levels of fnancing.
IV. RECOMMENDATIONS
61
Te recommendations and the Strategic Action Plan are an-
chored to the Governments climate reform agenda through a
framework that includes three pillars. Te framework identifes
the major objectives and the specifc activities needed to achieve
these objectives within each pillar, providing a basis for assessing
critical linkages between the objectives and activities, prioritizing
and sequencing of activities, and assigning clear responsibilities to
agencies for achieving the climate change goals. Te three pillars
of the framework are: (1) Strengthening the Planning, Execution,
and Financing Framework for Climate Change; (2) Enhancing
Accountability through Monitoring, Evaluation, and Review
of Climate Change Policies and Activities; and (3) Building
Capacity and Managing Change. Each activity in the framework
is assessed in terms of priority and risk to enable its sequencing as
part of the Strategic Action Plan.
Pillar 1: Strengthening the
Planning Execution, and
Financing Framework for
Climate Change
A major weakness in the present policy and budget insti-
tutional framework is that no single mechanism unifes all
climate change activities. Considerable eforts are being made
to strengthen budget coordination and establish a comprehensive
results-oriented budget system. Te success of these eforts is crit-
ical to aligning the NCCAP with the PDP, Departmental work
programs, local development plans, and the KRA-5. Efective use
of budget and policy planning tools that are either in use or being
developed is essential to ensure that climate change activities of
the Governmentwhether funded by the Government or by
Development Partnersare assessed, coordinated, and evaluated
against the NCCAP goals, and that these goals are reviewed efec-
tively in light of the implementation experience.
Objective I: Strengthen the Budget Planning
and Execution Framework for Managing Climate
Programs, Activities, and Projects
Implement and update climate screening guidelines to
provide a common reference point for budget planning and
management. In the context of the CPEIR, the CCC and the
DBM developed climate screening guidelines to tag PAPs aimed
at climate adaptation and mitigation. Tese were included as
part of DBMs FY 2014 budget memorandum. Te results of the
tagging should be used to identify climate PAPs in the budget
planning and management process throughout the Government.
Te guidelines should be implemented and updated on a regular
basis going forward, based on clearly defned processes. In ad-
dition, support needs to be provided to develop of-line systems
to enable selected Departments (e.g., DA) that have integrated
climate action into their PAPs to more efectively tag and report
climate expenditures.
Strengthen the identifcation, convergence, and funding of cli-
mate PAPs by making systematic use of budget processes and
tools, including new opportunities created by PFM reforms.
A variety of tools (e.g., budget calls, MTEF) already are available
to improve the identifcation, development, and selection of
climate PAPs in the Departments budget planning and managing
decisions. New opportunities introduced as part of broader PFM
reforms (e.g., Zero-Based Budgeting, the Program Approach, Bot-
tom-up Budgeting, and the Results-based Performance Manage-
ment System), when applied to climate PAPs, provide additional
opportunities to improve convergence, efectiveness, and efciency
of the outcomes of the Governments climate reform agenda. DBM
needs to provide Departments with guidance for more efective
use of these tools as well as provide participation incentives, for
instance to ofset likely higher cost to Departments for design and
coordination in the Program Approach.
Develop and adopt climate prioritization tools for use in the
budget planning process. In a fscally constrained environment
and facing a broad set of issues, DBM needs to not only identify
climate PAPs, it also need to prioritize and sequence them. Depart-
ments need support in balancing the need to satisfy their respective
mandates while delivering on their climate change related respon-
sibilities. Similar tools should be developed to support LGUs in
prioritizing climate action in their Annual Investment Plans.
Establish comprehensive coverage of climate PAPs in national
and sector plans, strategies, and budgets, and strengthen
reporting of mid-year and end-year implementation. Budget
transparency is impeded by the lack of a separate identifcation
of climate change in the economic and functional classifcation
of the budget, multiple sources of the appropriation structure,
in-year re-alignments, and of-budget expenditure (e.g., Develop-
ment Partner funds, Special Accounts, and SPFs). While some of
these issues are addressed through the current PFM reforms (e.g.,
appropriations will be limited to one year), others will remain and
should be closely monitored through of-line methods. Te DBM
is committed to capturing the full spectrum of climate activities
through secondary coding of the budget to support strategic
planning and reporting. In addition, it is important to continue
strengthening the reporting of budget execution of climate PAPs
at mid-year and end-year to identify the sources of fnancial inef-
ciency on climate expenditures.
Objective II: Align Plans and Strengthen Implementa-
tion to Achieve Climate Change Goals
Establish a shared climate program across Government by
aligning the National Climate Change Action Plan with the
Philippine Development Plan, Department work programs,
62
local development plans, and KRA-5. Te NCCAP provides a
reference point for the Governments climate change agenda, but
is not explicitly linked to the climate outcomes and outputs of the
national plans (PDP, PIP, KRA-5), Department work programs,
and local development plans. Planned updates to the PDP and the
NCCAP in 2013 provide an opportunity to ensure a coherent set
of climate outcomes and outputs among these plans. While the
climate screening guidelines provide a common reference point
for NCCAP activities, there is still a need to defne what should
be included in the KRA-5 classifcation to reduce confusion. De-
partment work programs can be aligned with NCCAP priorities
by: (1) increased convergence across Department work programs
(e.g., through the Program Approach), (2) reformed sector policy,
and (3) improved design, execution, and monitoring of PAPs. At
the local level, incorporating CCC should provide guidelines on
formulating and incorporating LCCAPs into CLUPs and CDPs,
which in turn provide the basis for LGU resource allocation
decisions in the Annual Investment Plan. Accountability for the
shared climate program can be increased through the formulation
of an operational business plan that identifes specifc measurable
targets by institution, in particular in preparation for phase 2 of
the NCCAP.
Formulate, enact, and implement complementary sector pol-
icy reform to enable transformative climate action. Te Gov-
ernment has already enacted some sector reforms (e.g., renewable
portfolio standard, privatization of power generation), and the
NCCAP identifes the need for additional reforms in key sectors
(e.g., water sector governance, introduction of risk transfer mecha-
nisms). Complementary sector reforms are essential to bring about
larger-scale climate results, including through the mobilization of
the private sector.
Reform the design of climate PAPs to strengthen relevance to
country climate priorities and maximize benefts. Te efec-
tiveness of PAPs, in particular the major ones highlighted in this
review, in delivering climate results can be improved by enhancing
their design in four areas: (1) establishing clear climate objec-
tives and targets refecting the notion of intent, (2) improving
management of risks and uncertainty, (3) increasing convergence
across sectors when relevant, and (4) recognizing and valuing
co-benefts. PAP designs that explicitly include NCCAP objectives
and that measure their outcomes against the NCCAP targets will
strengthen support for efective climate action. Te application
of climate screening tools and Environmental Impact Assessment
also contribute to enhancement of PAP design. Tis also applies
to project design criteria for the PSF and the ICC review criteria.
In the context of the Governments large infrastructure develop-
ment agenda, a robust decision-making framework in support of
the design of large PAPs would help address uncertainty and dis-
agreements about the likely efects of alternative climate plans and
policies. In addition, the Program Approach can also be used to
improve coherence and convergence of climate PAPs at the design
stage, resulting in reduced overlap and increased synergy and focus
on priority areas. Finally, greater recognition of the development
of co-benefts, in particular those related to poverty alleviation, of
climate PAPs can strengthen the design of climate action.
Converge CCA and DRRM agendas at the national and local
levels. Te policy convergence on CCA and DRRM needs to be
refected in implementation strategies, institutional arrangements,
and fnancing. A frst step in operationalizing this convergence at
the national and local levels would be to simplify and integrate
the vulnerability and disaster risk assessment tools so that they
focus on short- to long-term climate risk management; to develop
common indicators for monitoring progress; and to standardize
reporting on climate-related disaster activities. In addition, at
the local level it also entails the integration of CCA/DRRM into
LDPs on the policy front, building implementation capacity of
the LDRRMCs and LDRRMOs on the institutional front, and
the harmonization of LDRRMF and PSF rules that ensure equi-
table access and cost-sharing agreements to refect vulnerability
and needs on the fnancing front.
Adopt approaches to optimize mitigation opportunities.
Te CCC, the DBM, the NEDA, the DENR, and the DOE
have taken steps to identify mitigation opportunities to support
the implementation of mitigation action. However, neither the
NCCAP nor the development plans (PDP and Department work
programs) have formulated an overall national low-carbon and
low-emission strategy that optimizes mitigation opportunities or
identifes national and sector-specifc priorities for reducing GHG
emissions in the form of marginal abatement curves. Formulation
of such a national strategy can leverage some of the existing ini-
tiatives. In addition, strategy implementation would be facilitated
by the development of an MRV system, which is essential to
reduce uncertainties and to leverage private fnancing, and by the
establishment of data collection systems, baselines, and regulatory
institutions. Te participation of the private sector could also be
strengthened by establishing a national carbon price to provide
greater certainty about the value of mitigation activities.
Objective III: Rationalize and Harmonize
Climate Financing Instruments
Clarify and streamline rules, as well as the eligibility criteria
for climate fnancing at the local level. Establishing strate-
gic and complementary eligibility criteria, scope, and the level
and sources of co-fnancingincluding information on how to
leverage fundingacross the diferent sources of fnancing (e.g.,
PSF, LDRRMF, and LDF) will improve targeting and increase
efectiveness of these fnancing instruments. For instance, clear
rules should be established to preclude fnancing from multiple
sources for the same activity. Tis streamlining contributes to the
convergence on CCA/DRRM. Te PSF Board could lead such
an efort through the examples it sets in operationalizing the
PSF and through the convening power it has due to its size and
institutional visibility.
63
Establish the Climate Finance Group to coordinate climate
fnancing. Financing the climate agenda remains a challenge for
mitigation and for national and regional adaptation PAPs. Te
DOF is in a powerful position to help mobilize and coordinate
domestic and international resources, incentivize market-based
instruments, and leverage private sector resources to address me-
dium- to longer-term fnancing gaps. For instance, facilitating the
broader use of risk sharing and risk transfer instruments, which
can be appropriate for addressing large risks (e.g., catastrophic loss-
es from large-scale fooding or damages from typhoons), requires
tools that appropriately measure risks, set afordable premiums,
can ascertain quickly whether a risk event has occurred, and can
make payouts quickly. Such coordination requires the engagement
of CCC, NEDA, DBM, and DOF, and can be facilitated by pro-
viding some form of legal basis for the Climate Finance Group.
Improve harmonization, alignment, and coordination of De-
velopment Partner fnancing as part of programmatic support
to the Governments climate reform agenda. Te Philippine
Development Forum Climate Change working group should
be made more efective in providing more strategic support for
the Governments climate reform agenda. A more programmat-
ic approach that reduces duplication of activities and increases
coherence and transparency could strengthen support for the
Governments climate reform agenda.
Pillar 2: Enhancing Leadership
and Accountability through
Monitoring, Evaluation, and
Review of Climate Change
Policies and Activities
Efective leadership can drive climate change to the top of
the policy agenda; systems to monitor results will improve
accountability. Clearly defned institutional roles and respon-
sibilities are essential for fostering leadership that can efectively
facilitate the translation of policies into action and results. In this
context, good use can be made of efective champions of climate
change policy and practice. Agency experience can be used in a
climate change communication policy.
Objective I: Enhance CCCs leadership role
in reviewing and communicating climate
change performance
Strengthen the annual CCC review of climate change policy
implementation to increase accountability, and generate
lessons learned for best practices. Monitoring and reporting of
NCCAP implementation by CCC could be improved in three ar-
eas. First, the CCCs annual implementation progress report, while
recapping past implementation, does not include desired goals
for the coming year, an assessment of the achievements relative to
the goals for the prior year, or a summary of key issues leading to
performance shortfalls and recommend actions to overcome them.
In essence, while there is reporting, there are few suggestions for
improvements. Second, the CCA/DRRM agenda remains uncoor-
dinated, but could be improved if the CCC consolidated reporting
of all climate-related disaster prevention. Finally, the CCC needs
to establish a system to review the LCCAPs and their integration
into the Comprehensive Development Plan and the Comprehen-
sive Land Use Plans to generate necessary lessons learned.
Objective II: Strengthen Coordination between CCC
and Oversight Agencies and Departments
Create a champion group to establish coordination between
the CCC and oversight Agencies. Improved coordination and
shared vision are essential for ensuring efective implementation of
the Governments climate reform agenda. A key step in facilitat-
ing greater coordination between CCC, NEDA, DBM, and DOF
is convening a Champions Group consisting of these Agencies,
to lead by example. Te Champions would work together based
on agreed priorities and strategic directions that include clear
enforceable targets, roles and responsibilities, and accountabilities
that would establish guidance and reference points for efective
climate change governance. Areas where relationships could be
clarifed include setting entry points for updating the PDP and
the NCCAP to ensure consistency, updating the ICC review
criteria to refect climate considerations, establishing review cri-
teria for the PSF (CCC and NEDA), updating climate screening
guidelines or enhancing participation in the budget process (CCC
and DBM), and identifying fnancing needs and strategic resource
mobilization plans (DOF and CCC and DBM).
Establish coordination between the CCC and the national
and local DRRM Councils, and the PSF Board. Te MOU
between the NDRRMC and the CCC is not fully efective,
and will need to be revised and expanded to include operational
guidelines that better refect the policy convergence with a clear
focus on the specifc responsibilities on climate-related disaster
risk prevention. Te CCC does not have a local presence, so the
role of the LDRRM Councils could be expanded to formulate
and implement both DRRM and CCA activities. Te PSF Act
already defnes the broad contours of the relationship between the
PSF Board and the CCC, which is mandated to provide technical
support to the PSF Board with regard to developing criteria for
project selection and prioritization, and in the review of projects.
Te Implementing Rules and Regulations designate the CCC as
interim secretariat to the PSF, adding to the responsibilities of the
CCC and making coordination between the PSF Board and the
CCC essential for the success of the PSF. Te CCC will be in a
position to develop the operations manual and develop the review
criteria for PSF projects, which are exempted from ICC reviews.
64
Objective III: Strengthen Monitoring
in the Departments and LGUs
Reform existing M&E systems to link with the NCCAP across
all levels of Government. Te development of a consistent set of
climate performance indicators, supported by measurable targets to
monitor progress, will further enable activities across the Govern-
ment to be clearly focused and aligned. Te CCC could lead the
efort to identify and include climate performance indicators and
major fnal outputs as part of the Governments current eforts to
refne them and in establishing the RBPMS across Departments
and Agencies. At the local level, climate activities could be reported
by the LGUs in their Annual State of the Local Governance Report.
A major long-term efort is required to address capacity issues and
integrate Departmental M&E systems into climate change policies
and goals. Departments are faced with many reporting requirements
and limited capacity to use the data for strategic planning purposes,
impeding the efective M&E of all Departments PAPs, including
the climate PAPs. Similarly, the newly introduced RBPMS ofers the
ability to identify entry points for tracking and evaluating climate
action, which helps establish a plan and identify priorities.
Adopt tools to document and inform about the co-benefts of
climate action and integrate them into the climate prioritiza-
tion tool. Tools to inform about the co-benefts of climate pro-
grams, activities, and projects would strengthen support for priori-
tizing them in the budget planning process. Tey would also enable
public reporting on NCCAPs gender-related ultimate goal, raising
awareness about climate change among the general populace.
Pillar 3: Building Capacity
and Managing Change
Weak institutional capacity and low public awareness of
the impacts of climate change can limit the efectiveness of
climate programs, actions, and projects. Prioritizing capacity
building eforts and developing a climate knowledgebase at all
levels of Government will pay dividends through a more success-
ful mainstreaming of climate change into policy, budgets, and
fnancing. Formalizing systems and networks to facilitate knowl-
edge sharing is essential to support implementation.
Objective I: Build Skills and
Knowledge-base on Climate Change
Develop staf capacity through training programs, throughout
the Government. Implementation of the climate reform agenda
requires knowledgeable and skilled staf throughout Government.
Staf training to raise capacities to carry out these tasks would
streamline implementation of the climate reform agenda, and
would help signifcantly with raising institutional memory. Gov-
ernment agencies, in consultation with the CCC, should develop
programs to train staf in climate change technology and adminis-
tration and to adapt business processes to incorporate these skills.
Incentivize generation of knowledge, and facilitate the sharing
of knowledge to overcome the signifcant capacity gap in over-
sight agencies, throughout Departments, and at the LGU level.
PAPs under implementation can provide powerful lessons and data
to all areas of government that are involved in climate activities.
Tis points to the need to develop systems for identifying lessons
learned from climate PAPs at national and local levels, incentiv-
ize staf to extract lessons, use content management systems to
help categorize and organize information, and synthesize lessons
learned to improve dissemination. To complement the develop-
ment of internal knowledge, eforts must be taken to establish a
strong network with external key players in climate change by sup-
porting the development of a virtual network of practitioners, and
through the establishment of Centers of Excellence. Te internal
and external knowledge need to be made readily accessible to staf
to enable them to make informed decisions. Te DENR, the lead
designated agency for efective dissemination of information at
various levels, has an online Climate Change Resource Center that
was established to improve science-based knowledge on climate
change. At present, the website ofers very limited resources on
climate change; most of the information available consists of old
news articles, suggesting that the website is not regularly updated.
Tis needs to be strengthened and updated with linkages to
information portals and repositories, which could help gather the
knowledge created by academia or specialized agencies as well as to
collect lessons learned from the implementation of programs.
Objective II: Raise Public Awareness
of Climate Change
Raise Public awareness of climate change to guide private
actions. Te majority of Filipino people are already knowledge-
able about climate change and are personally taking actions to
address climate change risks or reduce emissions. However, the
poor and the less educated, who are often the most vulnerable, are
also are the least knowledgeable about climate change. Raising
public awareness through a targeted information education and
communication campaign can increase the adaptive capacity of
the most vulnerable populations.
Strengthen public support for climate reform through enhanced
and informed civil society participation in climate change
policy and review. Civil Society Organizations (CSOs) serve a
particularly important role in ensuring implementation of the cli-
mate change agenda by raising awareness of the issue, building trust
in communities, and exerting pressure for increased transparency.
Tis helps garner the necessary popular support for climate change
programs and the current reform agenda. Te continued participa-
tion of CSOs in institutions (the CCC Advisory Board; the PDF,
NDRRMC, and LDRRMC proceedings; and the PSF Board)
and their input on policies will not only help ensure responsiveness
to community needs but also strengthen decisions. Te quality of
participation by CSOs can be strengthened by providing easy access
to knowledge repositories and information portals.
65
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66
Pillar 1: Strengthening the Planning, Execution, and Financing Framework for Climate Change
Pillars/Objectives/
Activities
Observations on
Current Status
Key Linkages Priority Risks and Risk
Management
Lead
Agency
Supporting
Agency
1.1 Strengthen the Budget and Accounting Framework for Managing Climate PAPs
1.1.1 Integrate climate
change into budget
planning and man-
agement tools.
Reforms underway aim to
tag all CC-related spending
in budget based on climate
screening guidelines);
ongoing PFM reforms provide
opportunity to strengthen
identifcation, convergence,
and funding of climate PAPs.
Link with 1.2.3 VHP1:
25

Use of planning
tools underpins
all climate
change activi-
ties.
LR2:
26

Screening
Guidelines have
been tested with
departments,
but capacity
and institutional
issues may im-
pede progress.
PFM reforms are
already in place.
DBM CCC, NEDA
1.1.2 Establish compre-
hensive coverage
of all climate PAPs
in national and
sectoral plans,
strategies and
budgets.
Budget allocations, special
purpose funds, development
partner funds are currently
partially or not included in
climate change monitoring
and review.
Link with 1.3.4 HP:
but long-term
requires system-
atic institutional
change beyond
climate PAPs.
HR:
Broader set of
stakeholders will
create constrain
progress.
DBM NEDA , CCC
1.1.3 Strengthen report-
ing of climate PAPs
to cover mid-year
and end-of-year
implementation.
Financial management and re-
porting systems are currently
not integrated. DBM has
begun to implement an inte-
grated fnancial management
system (GIFMIS) on a pilot
basis, which is expected to
be fully operational in several
years.
Link with 1.1.1;
ultimately, bud-
get management
of climate PAPs
depends on
tracking actual
spending and
outcomes.
VHP:
Essential for
PFM and pro-
gram budgeting.
HR:
PHs decentral-
ized system and
the long-term
nature of GIFMIS
implementation.
Administrative
strengthening
can be useful in
short term.
DBM DOF
1.2 Align Plans and Strengthen Implementation to Achieve Climate Change Goals
1.2.1 Establish a shared
climate program.
NCCAP does not include all
climate change activities in
Department work programs.
PDP does not include all NC-
CAP outcomes and outputs.
Update PDP, sectoral, and
local plans and NCCAP to
align outcome. Plans need to
be developed based on com-
mon economic and climate
projections.
Link with 1.1.2,
1.2.2, 1.2.3, 1,2,5
HP:
Increased align-
ment is import-
ant to ensure
the risks and
opportunities
to development
programs are
adequately rec-
ognized in the
planning stages.
MR:
Necessary,
but success
dependent on
comprehensive
coverage.
CCC,
NEDA
Depart-
ments,
LGUs
ANNEX A: Strategic Action Plan
25
VHP = Very High Priority, HP = High Priority, MP = Medium Priority
26
LR = Low Risk, MR = Medium Risk, HR = High Risk
67
1.2.2 Adopt comple-
mentary sectoral
reforms.
Departments are responsible
for implementing the NCCAP.
Transformative impacts on
climate change will require
sectoral reforms in programs
of key Departments: energy,
transport, agriculture, infra-
structure, and environment.
Link with
2.2.1, 2.2.2;
Depends on
coordinated
leadership from
CCC/DBM/
NEDA.
VHP:
Will be driving
force for
transforma-
tive change in
next phases of
NCCAP.
HR:
Lack of incentive
for more efec-
tive coordination
and program
formulation
among lead
agencies.
Key
Depart-
ments
CCC
1.2.3 Reform design
and execution of
climate PAPs.
Most PAPs have not been
designed with a climate lens,
resulting in lost opportunities.
The ICC criteria were last
revised in 2005 and do not
include climate change
considerations. Revisions to
the criteria including robust
decision-making frameworks
would make investments
more resilient.
Link with 3.2.1
Can strengthen
ties between ap-
propriations and
implementation
performance.
Adds depth and
aids design of
climate PAPs.
VHP:
Increasing
efciency and
efectiveness
of is essential
for generating
support for the
climate agenda.
MR:
Lack of traction
of the CCC with
the Depart-
ments, and
NEDA will re-
main the biggest
risk.
NEDA,
CCC
Depart-
ments
1.2.4 Converge climate
change adaptation
and climate-relat-
ed DRRM.
CCA/DDRM policy conver-
gence has converged on adap-
tation as appropriate way ad-
dress climate related disaster
prevention, but policy has not
been operationalized. Thus
far only draft guidelines have
been issued on integrated
assessment of vulnerability to
climate change, particularly at
provincial and local level.
Link to 1.1.1
screening guide-
lines, and 2.2.2
coordination be-
tween CCC and
DRRM council.
VHP:
Paradigmatic
shift away from
disaster re-
sponse to disas-
ter prevention
is cost efective
and essential
for sustainable
development.
MR:
Depends criti-
cally on progress
in uniformly
tagging climate
PAPs in national
and local gov-
ernment. Limit-
ed incentives for
coordination.
CCC
DBM
NDRRMC
1.2.5 Adopt tools and
processes to op-
timize mitigation
opportunities.
Current policy is focused
primarily on adaptation
measures, but signifcant
increases in mitigation in-
cluding on REDD+ are being
implemented.
In addition, steps are being
taken to develop MRV sys-
tems and low carbon strate-
gies for specifc sectors.
Establishing a notional price
for GHG emissions could
support the low emission
strategies by signaling to
private investors.
Links to 1.3.3 and
1.3.4.
HP:
Will improve
Philippines
profle inter-
nationally and
potentially
attract fnanc-
ing. Provides
development
co-benefts.
HR:
CSO and public
have been
outspoken on
the need for
international
fnancing for
mitigation, car-
bon prices cant
be perceived as
imposing costs.
CCC NEDA,
Depart-
ments
68
1.3 Rationalize and Harmonize Climate Financing Instruments
1.3.1
Streamline rules
and eligibility crite-
ria for local climate
change fnancing.
Sources of local climate
fnancing are fragmented with
diferent eligibility criteria,
cost sharing arrangements.
Strategic and complementary
eligibility criteria, includ-
ing information on how to
leverage funding, will increase
targeting and efectiveness
of fnancing instruments and
contribute to operational-
izing a joint Climate Change
Adaptation-Disaster Risk
Reduction and Management
framework.
Link with 2.2.3;
Operational-
ization of the
PSF provides
an opportunity
to harmonize
across sources
of fnancing.
HP:
Reducing
fragmentation
of sources
of fnancing
increases acces-
sibility of funds
and improves
efciency.
HR/MR:
LGU capacity
Limited
incentive for
harmonization
across sources
of fnancing.
DOF CCC
1.3.2
Adopt reform of
selected fscal
instruments after
reviewing their
climate change
impact.
Taxes and subsidies applied
for other purposes may have
unintended consequences. PH
has no fuel subsidy, but other
tax and spending instruments
should be reviewed.
Ensures con-
sistency across
fscal policies.
MP:
A limited
number of such
programs have
been introduced
recently.
MR:
Divergent stake-
holder interests.
DOF DBM, CCC,
Depart-
ments
1.3.3
Establish the
Climate Finance
Group to coor-
dinate climate
fnancing.
The CFG remains an adhoc
group. The DOF, directly or
through the formal creation
of the CFG, needs to develop
a plan that identifes fnancing
needs, develops appropri-
ate instruments to address
risk-sharing, and mobilizes
needed resources. DOF is al-
ready engaged in catastrophic
risk fnance.
Link to 2.2.1,
2.2.2
VHP:
NCCAP iden-
tifes climate
fnancing as an
implementation
challenge. Signif-
icant gaps exist
in the approach-
es to be used for
fnancing mitiga-
tion at all levels
and coordination
of adaptation at
the national and
regional levels.
MR:
International cli-
mate fnancing,
esp. for climate
risk, is a new
complex area.
DOF CCC
1.3.4
Strengthen devel-
opment partner
support for Gov-
ernments climate
reform agenda.
The climate change Working
Group of the PDF had been
established to share infor-
mation among development
partners. This forum should
be used more efectively to
establish joint support for
the programmatic approach
to climate change planning,
fnancing and M&E.
Link to 1.3.2,
1.3.3, 1.1.1, 1.12,
HP:
Coordinated
support can be
a catalyst for
change.
MR:
Risks mainly
relate to making
the Working
Group efective.
DOF CCC, de-
velopment
partners
69
Pillar 2: Enhancing Accountability through Monitoring, Evaluation, and Review
Pillars/Objectives/
Activities
Observations on Current
Status
Key Linkages Priority Risks and Risk
Management
Lead
Agency
Supporting
Agency
2.1 Enhance CCCs role in reviewing and communicating climate change performance
2.1.1 Strengthen the
annual CCC review
of climate change
policy implemen-
tation
The CCC is required to submit
an annual progress report
on progress in implementing
NCCAP. The reports would
be more efective if they
include the desired goals of
the coming year together
with an assessment of the
achievements relative to the
goals for the prior year and a
consolidated reporting of all
climate disaster prevention
activities.
Links climate
change review
more efectively
to budget poli-
cies and review
processes.
VHP:
Establishing ef-
fective infuence
of CCC on policy
formulation and
implementation
oversight is crit-
ical to long-term
success
MR: Lack of
traction of the
CCC with the
bureaucracy.
CCC NEDA,
DBM,
NDRRMC
2.2 Strengthen Coordination between CCC and Oversight Agencies and Departments
2.2.1 Develop terms
of Reference for
all CCC Advisory
Board members
Based on the experience of
the past few years, coordina-
tion between CCC and execu-
tive agencies (most are Board
members) can be streamlined
and formal processes estab-
lished to reduce transaction
cost and efectiveness.
All climate
change reforms
depend critically
on coordination
between CCC
and key NGAs.
VHP:
Critical for
reform. Most
agencies are
represented in
the CCC Adviso-
ry Board.
MR NGAs
continue to
prioritize core
executive func-
tions..
CCC CCC Board
Agencies
2.2.2 Convene a Cham-
pions Group
The CCC, NEDA, DBM and
DOF are mandated to oversee
the implementation of the
NCCAP, PDP, Budget Man-
agement Memoranda and
the Philippine Investment
Plan, key elements of climate
change governance and public
expenditure.
Link with 2.1.1,
2.2.1
VHP:
Leadership
by the four
agencies would
enable other
Departments to
conceptualize
and operation-
alize their own
climate change
action.
MR:
Bureaucratic
boundaries need
to be clarifed
and possibly
adjusted.
CCC,
NEDA,
DBM,
DOF
2.2.3 Strengthen CCC
coordination with
the national and lo-
cal DRRM Councils
The CCC does not have a local
presence, so the role of the
LDRRM Councils could be ex-
panded to formulate and im-
plement both DRRM actions
and adaptation activities.
Link with 2.1.1,
and 1.2.4
HP:
A necessary
clarifcation of
CCC functions
to strengthen
focus on areas
of comparative
advantage.
HR Bureaucrat-
ic boundaries
need to be
clarifes. Current
MOU between
NDRRMC and
CCC does not
have sufcient
operational
detail.
CCC NDRRMC
70
2.2.4 Operationalize
CCC responsibili-
ties relative to the
PSF Board
The CCC is mandated to sup-
port the PSF, including iden-
tifying criteria for projection,
review projects for approval
by the board
A necessary
refnement of
CCC duties
VHP:
Operationaliz-
ing the PSF is
important for
fscally
constrained
LGU, but also
establishing
country systems
for climate
fnancing.
MR:
the limited
resources
compared to the
large LGU needs
make it critical
to defne clear
and transparent
criteria for proj-
ect selection
CCC,
PSF

2.3 Strengthening Monitoring in the Departments and the LGUs

2.3.1 Review Depart-
mental M&E
systems and link
to climate change
M&E requirements
Departments are faced with
numerous reporting re-
quirements and have limited
capacity to use the data for
strategic planning purposes;
Few climate
indicators and
targets are in place
Linked to activ-
ities 2.2.1 and
2.1.1 Essential
for long-run
improvement in
climate change
M&E.
HP:
M&E systems
are the key to
increasing ac-
countability
MR Department
capacity con-
straints
CCC NEDA DBM
Pillar 3: Building Capacity and Managing Change
Pillars/Objectives/ Activities Observations on
Current Status
Key Linkages Priority Risks and Risk
Management
Lead
Agency
Supporting
Agency
3.1 Build Skills and Knowledge-base on Climate Change
3.1.1 Establish a climate change
database and learning system.
Systems to identify
and disseminate
best practices are
limited.
Link to 1.2.3,
3.1.2; also
cross-cutting
all aspects of
the climate
change program.
VHP:
The efciency
and efective-
ness of climate
PAPs can be
improved from
lessons learned
from current
experiences.
MR:
1) Department
capacity con-
straints.
2) Availability of
appropriately
skilled practi-
tioners that can
capture lessons.
Depart-
ments

3.1.2 Develop climate change train-

ing programs.
Mainstreaming of
climate change
is new for all
Departments
and Agencies. All
Agencies need to
identify skill gaps
and training needs,
CCC needs to liaise
with the NGAs and
facilitate a con-
solidated training
program.
Cross-cutting
all aspects of
the climate
change program.
VHP:
Knowledgeable
staf is essential
to implement
climate reform
agenda.
MR:
Trainees need to
be used efec-
tively.
CCC NGAs LGAs
71
3.1.3 Create a virtual network of
practitioners.
The technical pan-
el of experts has
yet to be formally
established and ac-
tivated. Currently
the CCC works
with a few experts
on an individual
basis.
Cross-cutting
all aspects of
the climate
change program.
HP:
CC capacity
can be greatly
expanded by
establishing a
virtual network
of practitioners
that can be gal-
vanized through
the
organization of
symposiums,
South-South
exchange, or
similar events.
MR:
1) CCC capacity
constraints, and
2) availability of
appropriately
skilled practi-
tioners.
CCC
3.1.4 Establish Centers of Excel-
lence on Climate Science.
The NCCAP iden-
tifes the creation
of Centers of
Excellence on
Climate Science.
Plan needs to be
devised to select
and develop terms
of reference for
the centers. The
scope should
be expanded to
provide linkages to
development.
Link to 3.1.2; also
cross-cutting all
aspects of the
climate change
program.
HP:
natural oppor-
tunities exist
to showcase
innovations in
climate action
that facilitates
leadership.
MR:
1) CCC capacity
constraints, and
2) availability of
appropriately
skilled practi-
tioners.
CCC
3.1.5 Establish an information por-
tal on climate change.
The DENR, the
lead agency des-
ignate for IEC, has
an online Climate
Change Resource
Center (CCRC) to
disseminate infor-
mation at various
levels. The website
has not been regu-
larly updated.
Link with 3.2.1;
but also
cross-cutting
all aspects of
the climate
change program.
HP:
Engages the
public and gen-
erates demand
for climate
action.
MR:
Limited Depart-
ment capacity,
willingness of
Departments to
collect and share
best practices.
DENR CCC,
Depart-
ments
3.2 Raise Public Awareness of Climate Change
3.2.1 Raise public awareness of
climate change
Majority of Filipi-
nos are aware of
climate changes.
Knowledgeable
citizens are taking
actions on climate
Cross-cutting HP:
Engages the
public and re-
duces need for
more expensive
public actions.
LR: CCC
3.2.2 Strengthen public support
for climate reform agenda
through enhanced civil soci-
ety participation.
CSO were in-
strumental in the
formulation of
the CCA, NFSCC,
NCCAP, and the
PSF. They have a
representative in
the CCC advisory
board, the PSF
Board, and in the
national and local
DRRM Councils.
Cross-cutting:
CSOs provide
essential
support to all
aspects of the
climate change
policy and im-
plementation.
HP:
Active CSO
engagement is
important for
the continued
public support
of the climate
reform agenda.
LR:
CSOs are
already quite
engaged.
CCC NDRRMC
72
A CPEIR is a systematic examination of the factors that deter-
mine the ability of public institutions, policies, fnancing, and
related processes in a country to translate its climate agenda
into desired climate results efciently and efectively. It consists
of a quantitative and qualitative assessment of public expenditures
and fnancial management, and a qualitative assessment of climate
policies and institutional arrangements. A more detailed frame-
work is included in Part V of the Extended Technical Report.
Data sources: Te CPEIR draws upon a) primary data collected
from the DBM, CCC, NEDA, selected Departments, Agencies,
and LGUs; b) documentation available in the sectors (e.g., sector
strategies, plans, reporting documents, and analytical work); and
c) interviews and consultations were carried out with the respec-
tive agencies at national and local levels through workshops and
technical meetings.
Conceptual challenges that prior CPEIRs have identifed include
the absence of climate change function in the classifcation of the
Functions of Government (COFOG), difculties in identifying
the incremental cost of an adaptation intervention (e.g., upgrading
of public infrastructure), and difculties attributing adaption and
mitigation co-benefts to expenditures within a program/project.
Scope
Policy review: laws, strategies, and policies related to environ-
ment and climate change enacted since 1999, with a specifc focus
on those enacted and implemented since the adoption of the
Climate Change Act of 2009.
Institutional review: Processes, approaches, tools, capacity, and
institutional arrangements and coordination in selected Coor-
dinating bodies (CCC, NDRRMC, and CCCC) and oversight
bodies (DBM, DOF, and NEDA), implementing line Depart-
ments (DA, DENR, DOE, DOST, and DPWH), and LGUs
(Albay and Makati).
Public expenditure review: Climate change appropriations and
obligations by Department and NCCAP priority, departmental
implementation capacity, sources of fnancing, fnancing gap of
fve Departments (DA, DENR, DOE, DOST, DPWH), some
attached agencies, and two LGUs (Makati and Albay). See Figure
1 for Departments tagged under KRA-5 and CPEIR. Timeframe:
20082013 national level; (Makati and Albay 20082012).
Te CPEIR is based on a policy-based identifcation of climate
expenditures. Te scope of government expenditures is confned
to the national budget, excluding extra-budgetary spending and
fscal support. Te analysis is limited to expenditures categorized
under operations (excluding support to operations) and inscribed
under the OSEC budget plus selected special accounts (e.g., Fund
151,). Financing of donor projects and programs integrated in
the national budget are covered in the CPEIR, but not projects
that are funded directly by external donors and managed outside
the national budget At the subnational level, the scope of the
assessment is confned to the inclusion of appropriations in the
LDPs and AIPs.
Public Finance Management: budget planning and process
(integration of Climate actions into budget proposals), use of
strategic planning and screening tools (NCCAP, MTEF, PIP,
work programs, guidelines), the decision-making process (budget
call, stakeholder engagement, budget hearings), and procedures
(programmatic approach), budget transparency and execution.
Establishing the climate change classifcation required the
development of a list of PAPs with the related appropriations,
allotments, and obligations for 20112013 (and when available
for 20082010). Tey were identifed based on the tagging of
PAPs under KRA 5 in 20112013 and the tagging of climate-relat-
ed programs and projects by the Departments in their 20112016
work programs (see Box 1). Te list was revised and further updat-
ed based on the identifcation of NCCAP activities in the budget
and in consultation with the CCC and Departments. As a result,
a fnal consolidated list was prepared covering activities in the
NCCAP, the KRA-5, and the Departments work programs.
Te climate change classifcation categorizes PAPs at central
and local level based on whether they contribute to adaptation
or mitigation. Using the Rio Marker on Climate Change as a ref-
erence, an activity was considered in support of (1) climate change
mitigation if it reduces GHG emissions into the atmosphere or
enhances GHG absorption from the atmosphere or (2) climate
change adaptation if it reduces the vulnerability of human or nat-
ural systems to the impacts of climate change and risks related to
climate variability by maintaining or increasing adaptive capacity
and resilience. In the case of an activity contributing to both ad-
aptation and mitigation, the respective projects or programs were
documented separately to avoid double counting.
ANNEX B: Framework for
Analysis and Limitations
73
Limitations:
Detail of activities often not available in GAA. A number of
NCCAP activities are merged with several other activities in
the same budget line (e.g., activities related to capacity build-
ing or climate research are included with similar activities).
Similarly, it is not possible to distinguish the incremental com-
ponent related to adaptation within a PIP (e.g., the additional
construction costs of irrigation systems or water infrastructure
to render the investment more climate resilient) as these costs
are not documented in separate budget lines and, in most
cases, are included only in a few projects and programs.
Identifying climate appropriations in DAs budget as only
a few activities are documented separately while for most
others detailed information about the program/projects
components are missing
Incomplete data set on (appropriations and obligations),
fnancing needs for CC-related activities and for some
Departments limiting assessment of budget execution.
Simple categorization of PAPs into adaptation and mitigation
supporting PAPs not based on concept of climate fnance
additionality.
Lack of alignment to establish linkages between PIP, Depart-
ment Work programs and budgets
Limited documentation to allow separate identifcation of
small-scale activities
Short history and less that comprehensive coverage resulting in
the omission of irrigation and transportation PAPs at DOTC.
Box 1: Climate Change
Classifcation Initiatives
Philippine Development Plan (PDP). In the context of
preparing the 20112016 PDP, NEDA identifed climate
actions in several of the PDPs chapters (agriculture and
fshery, infrastructure development, and natural resource
and environment sectors), which led to the integration of
61 climate-related projects in the PIP.
Key Results Area 5. DBM identifed in the 2011, 2012, and
2013 national budget programs and projects that support
the KRA 5 objectives (promoting sustainable natural
resource utilization and CCA and mitigation strategies).
Departments work programs 20112016. Based on the
request of the CCCC, the Departments pertaining to the
cluster identifed CC-related programs and projects in the
GAA 2011 and NEP 2012 and prepared budget proposals for
existing programs and projects as well as planned activities
for 20122016. Out of the 10 Cluster Departments, 5 are
part of the CPEIR.
Multilateral Development Bank Classifcation system.
In order to improve tracking and reporting of climate
fnancerelated commitments and investments, several
MDBs have developed a joint approach to establish a
practical, harmonized climate fnance classifcation system.
Figure 1. Tagged Departments and attached agencies under KRA 5 and CPEIR
DEPARTMENTS AND
ATTACHED AGENCIES
UNDER CPEIR
Attached agencies
DA (PCIC, BFAR, ITAF, NIA)
DOST (PCCARD, PCIEERD,
PCHRD)
DEPARTMENTS AND
ATTACHED AGENCIES
TAGGED UNDER KRA 5
20112013)
Departments (and attached agencies)
DAR
DA (BFAR, PCPDM)
DOF, DOH, DILG, DSWD
DND (OCD, Phil Vet Af. Ofce, Php
Army/Air Force/Navy)
DENR (NAMRIA, MGB, NWRB, PCSD)
Other Institutes/exec ofces
NEDA, CCC, PRRC, MMDA,
Bank of the Philippines, NRDC
Departments
(and attached agencies)
DA (BSWM, BAR, ATI, BAFPS,
RFU (I, III, V, VI, X), ATI)
DOST (PAGASA, PIVS
DENR (EMB)
DPWH
DOE
Sustainable Development Department
East Asia and the Pacifc Region
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